Australia makes a major decision about cryptocurrency tax regulations.
The government of Australia has provided official confirmation that virtual currencies would not be subject to the tax procedures applicable to foreign currency transactions.
Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones noted that the judgment could generate doubt regarding the status of Bitcoin and other crypto-assets for taxation purposes in Australia. Both of them made this statement.
The government will seek to legalize the present tax arrangements, meaning that crypto assets will no longer be classified as foreign money for taxation purposes in Australia.
The long-term capital gains tax will still be applicable to cryptocurrency assets that are kept in investment portfolios. The newly enacted regulations will have their effective date set to the first of July in the previous year.
According to what Mr. Chalmers and Mr. Jones indicated, this provides certainty and clarity at a time when cryptocurrencies are experiencing volatility. The government will continue to play a role in the landscape of quickly developing digital currencies in a pragmatic and timely manner, as they have been doing so so far.
This decision comes after a cryptocurrency exchange situated in Australia by the name of BTC Markets became the first cryptocurrency firm in the nation to be granted a license to provide financial services.
BTC Markets has a certification in information security management from the International Organization for Standardization (ISO) and a certification from Blockchain Australia, the national industry association for the cryptocurrency sector in Australia.
2022 Intense Bear Market Run
The bitcoin market has been on a downward trend throughout this year. Nonetheless, things took a turn for the worst over the weekend as investors panicked in response to the United States Central Bank increasing the interest rate by 75 basis points.
Fears of a worldwide economic downturn were sparked as a result of it, and investors in cryptocurrencies swiftly pulled their money out of the market. This resulted in a widespread selling frenzy and a significant price decline for many of the best blockchains in the world.