As the digitals coins have massively surged in value, millions of Aussies are beginning to try their hands on Australian cryptocurrencies. With both the private sector and the Australian government showing interest in regulating digital currencies, the crypto scene in the country has seen tremendous growth.
The first step to understanding Australian cryptocurrencies is going through a detailed Australian crypto tax guide. A few other essential details that you should know about investing in crypto are given below.
Cryptocurrency Regulations in Australia
Digital currencies, cryptocurrency exchanges, and cryptocurrencies are legal in Australia. However, Australia has progressively been on top of implementing regulations and modifications to enforce rules and changes.
Cryptocurrencies were declared legal in Australia in 2017, and they are subject to Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF 2006).
According to the Australian Transaction Reports and Analysis Centre, the regulation for cryptocurrency exchanges in the country requires the entities acting as exchanges to identify and verify the users, maintain relevant records, and comply with the government AML/CTF obligations.
As there are possibilities of the landscape of crypto trading changing over course, Australia’s regulatory authorities continue to develop the latest regulations to provide a clear operational framework for the investors.
Cryptocurrency Exchanges in Australia
To buy Bitcoin or other cryptocurrencies in Australia, you have to access a leading crypto exchange platform to trade. With so many different exchange platforms working the business, you must choose a reliable one with good security features.
Most reliable cryptocurrency exchanges will allow you to create an account and transfer Australian dollars to buy different cryptocurrencies like Ethereum or Bitcoin. Some crypto exchanges not only let you buy and sell cryptocurrencies but also let you store them on the platform.
Remember these factors while choosing an exchange for investing in Australian cryptocurrency:
- Platform Security
- Ease of use
- Ability to buy coins with direct AUD
- Fees and spreads
- Trading features
- Mode of payments
According to the Australian crypto tax guide, cryptocurrency is perceived as a property, a CGT asset for tax purposes. So, to avoid any losses, you must handle the transactions through a trusted crypto-exchange platform.
Cryptocurrency Does Not Translate To Money
Bitcoin or any other form of cryptocurrency, for the matter, does not equate to money. So, for example, Australian cryptocurrencies, even though they can be used to buy and sell things, cannot be used regularly for all payments.
When it comes to a unit of account, in Australia, the prices of services and goods are measured in Australian dollars. Even though some businesses may accept cryptocurrencies, they are not the primary way to measure and compare prices.
Bitcoin Is Not the Only Cryptocurrency
When you hear the word ‘cryptocurrency’, the first thing that comes to everybody’s mind is Bitcoin. The truth is, there are many other popular altcoins besides the famous Bitcoin.
Bitcoin continues to be the most popular, and hence valuable cryptocurrency in Australia, just as it is worldwide, and is followed by Bitcoin Cash, Ethererum, Tether, Cardano, Ripple, and the recently popular Dogecoin.
As more and more altcoins emerge each day, many developments occur in the Australian cryptocurrency landscape. Before investing in cryptocurrency, browse through the options, the regulations surrounding it, and choose the one which matches your needs best.
Beware Of Scammers
No matter what form of cryptocurrency you are planning to invest in, you must always be well-informed of the possibilities of the issues going south.
With the cryptocurrency craze taking the world by storm, many posts are going around social media promising significant returns from unknown crypto assets. As a new entrant to the crypto world, there are high chances of you falling for such schemes. So, recognise such frauds and do everything in your power to avoid them.
Going through the Australian crypto tax guide will help you understand the various digital currency regulations in the country. Please bear in mind that the cryptocurrency market worldwide is highly volatile, and hence it would not be wise to invest your entire savings in cryptocurrencies.