Bitcoin has been legal in Australia since 2013 so why isn't anyone talking about it?
Watching the world clash over digital currencies has been something a little odd for me. My country or origin Australia has legalised bitcoin since 2013 and I'm even able to purchase things with it Source. That's of course if the business I'm buying from accepts bitcoin or any cryptocurrency as payment as Bitcoin isn't the only legal cryptocurrency, they all are. Even any crypto that is made today, tomorrow within the next few minutes or over the past few days.
In fact back in 2018 the Cafe close to my work I often visited accepted Bitcoin, Ethereum and XRP. I bought alot of coffee with Bitcoin needless to say everytime I walk into the Cafe now they tend to give me free coffee because those few months of buying coffee with bitcoin was quite the win today as the Cafe kept it and HODL.
It's nice of them to do the free coffee thing, they really don't need to do that. I made a purchase as a customer and the risk of accepting cryptocurrency instead of cash was greater on them then me back in those days. But they're a great family business and it's why I keep going back.
Australia has a progressive tax system
Now before you take my word as gospel please consult a tax professional as I am not an expert in crypto tax and requirements.
But from information available Australia has been the most progressive for tax purposes towards cryptocurrency and much of the onus is on investors and users of cryptocurrency.
In fact Australia has lessened taxes that saw cryptocurrency double taxed and Australia has removed the GST component of buying and selling cryptocurrency Source this doesn't mean cryptocurrency is recognised as a currency but depending on what you're doing with it, it can be.
For example if I purchase cryptocurrancy and use it to buy items or ingame items then this is not a CGT event and does not attract CGT Tax.
Staking and Decentralised Finance
However, the biggest tax advantage I have as an Australian over many many nations including the US which is still at logger Heads with its current crypto legislation currently being drafted is how airdrops, staking and validation tax and legislation stacks up.
In Australia if I am staking tokens or participating in Decentralised Finance according to the Australian Tax Office (ATO) this is not classed as a capital gains event. The income I earn from staking or even right here on Hive where I blog and receive upvotes is classed as income and goes towards my annual income statement and taxed at the income tax bracket you're in.
I'm predominantly writing this post to make Australians aware as this is something I only learned a few days ago. Unfortunately I listed my Hive as a CGT event and copped a 50% tax rate when I could have significantly lowered that tax bill.
Given online Australian crypto groups seem to run American narratives and get their news from another nation there is alot of frustration over tax rules which are incorrect because we have the most progressive tax rules on the global. So please if you're Australian contact a tax professional to gain clarity and you will learn that we (Australians) have it the best on the planet, which even Binance agrees Source.
Exchanges are legal even Decentralised Exchanges
In Australia we are able to engage with exchanges and Decentralised exchanges as the requirement for financial obligations are on the exchanges whom must be registered with ASIC and comply with anti money laundering and anti terrorism regulations.
Which is why I use the Australian exchange Coinspot I'm not suggesting you use it as there are other exchanges that comply with these laws so you need to do your own research. The fees are a little higher but not much different to Coinbase and there maybe added security, I can't remember fully but I think there is some protections involved for users but again you will need to do your own research for that part.
Australian National Block Chain Road Map
In fact Australia is powering a head in the Block Chain space and have developed a National Block Chain Road Map which it hopes will further advance Fintech and achieve mainstream adoption and support current and emerging industries.
I haven't read the paper yet but I intend to over the next few days in spare time and I will be happy to report back on what it says.
But as many know Australia has been an advanced nation when it comes to cryptocurrency and block chain technology but our HUGE island nation has been left out of all block chain related news. Even on Coinmarketcap they do not have us listed as legalised when we were the first.
Furthermore, in the worlds attempt to locate a safe haven for crypto miners as China and Asia cracked down on miners we were over looked despite having the largest potential and most sun and wind to power renewable energy Bitcoin operations.
While the world is in an utter mess fighting about this wonderful emerging Fintech, Australia quietly leads the world. Can someone say hello? we have a range of industry for investors in block chain to work on here without the political and social instability seen.... well everywhere else. We're worth looking into.
Image sources provided, supplemented with CanvaPro subscription. This is not financial advice and is not intended to readers and investors are urged to do their own research or contact an industry professional
Posted Using LeoFinance Beta