Bitcoin is an asset that has dominated the digital currency marketplace. The volatility shown by the cryptocurrency over the years often scares people from investing.
But, is Bitcoin legal in Australia? The answer is, yes. There are several reliable cryptocurrency exchanges available in the country through which you can trade Bitcoin.
If you have doubts about the legality of Bitcoin, the article will attempt to clear them.
Is Bitcoin Legal in Australia?
Cryptocurrencies, Bitcoin being one of them, are legal in Australia. They were legalized in 2017 by the Reserve Bank of Australia.
You can use cryptocurrency as a personal asset, for example, when paying for items that you will use or consume personally. If you are using cryptocurrency for any profit-making or business venture, you will be liable to pay taxes accordingly.
Under the Counter-Terrorism Financing Act 2006, cryptocurrency is subjected to anti-money laundering laws.
Are Cryptocurrencies Regulated in Australia?
There are several regulations in place for cryptocurrencies in Australia. For example, according to AUSTRAC, cryptocurrency exchanges operating in the country should be registered with the AUSTRAC. The exchange must verify its users, maintain records and comply with government-specific reporting.
The government has also proposed new payment laws involving digital currencies. For example, the government is looking at developing a licensing framework for digital exchanges. They are also planning to overhaul the payment industry by introducing a retail central bank digital currency.
The government is working towards creating an inclusive payment structure as Australians make over 55 million non-cash transactions every day.
Are Cryptocurrency Activities Taxable in Australia?
Cryptocurrency activities are taxable in Australia. According to the ATO, if you deal with cryptocurrencies, you must know your tax responsibilities when you buy, sell, or invest in them.
For example, any profit you make from selling Bitcoin is considered taxable income as part of your ‘capital gains’.
If you are trading in crypto, you need to maintain a record of all your transactions. For example, if you are buying Bitcoin, you need to have details like:
- The type of crypto asset
- Cost in Australian dollars
- Transaction date and time
- Transaction purpose
You can store these transaction details in a simple spreadsheet or software. These records need to be maintained for every single crypto transaction.
How Can You Safely Buy Bitcoin in Australia?
You can safely buy, trade, and sell Bitcoin using crypto exchanges. When choosing an exchange, consider the variety of digital assets available, the level of security, the user-friendly interface, customer support, analytics, and reporting.
Some crypto exchanges offer a demo mode feature. You can use the demo mode to understand and learn how the crypto marketplace functions before putting your money in.
So to answer the question, “is Bitcoin legal in Australia”? Yes, it is. Australia is one of the leading countries looking to understand the world of digital currencies and trying to set regulations for the safety of the users. If you are interested in crypto investing, register with a crypto exchange to know more.
