Daily Bulletin


Money

  • Written by Jeff Petersen


During the last few years, Australia’s interest in cryptocurrencies has been increasing with ever more individual investors and portfolio managers looking to buy and sell Bitcoin. Despite the fact that Bitcoin and other cryptocurrencies have been readily embraced by the Australian public, the country’s banks and central government have been slower to accept the new currency.

Right now, most major Australian banks refuse outright to engage in business with cryptocurrency companies. This resistance to new currencies is a historically normal response as banks protect themselves from high risk exchanges. However, there are some signs that banks are becoming slightly more liberal in their approach. For example, although they won’t trade the cryptocurrencies themselves, most now allow their customers to buy them using their debit cards, if not their credit cards.

In recent years, the Australian government has taken a relatively progressive approach to the legislation surrounding cryptocurrencies. For some time, cryptocurrencies including Bitcoin had been doubly taxed under the goods and services tax. However, in 2017, cryptocurrencies were declared legal and it was announced that they should be treated as property, thus making them subject to Capital Gains Tax.

Last year, more changes took place. This time the regulations controlling cryptocurrency exchanges were overhauled. Much tighter rules issued by the Australian Transaction Reports and Analysis Centre (a government department) mean that exchanges must be registered with the government, their users must be properly verified, proper records must be maintained, and various reporting obligations met. Those cryptocurrency exchanges that fail to meet these legal requirements are now subject to legal action, including criminal charges and fines. The cryptocurrency community has reacted positively to the new legislation because the previous confusion and controversy that prevailed before it was implemented was thought to be damaging. It’s believed in some quarters that clearer rules will help to motivate growth of Bitcoin and other cryptocurrencies.

Investors are currently watching Bitcoin’s price rise. In April it reached its highest point since November, breaking the $5,000 barrier across many exchanges. Some have put the surge down to a single, huge Bitcoin order, which in turn may have triggered an automatic scramble for the currency. Others, meanwhile, see the price hike as a positive sign for future trading.

The reaction of Australia’s banks and government to the advent of cryptocurrencies couldn’t be described as pioneering. However, neither has Australia been entirely reluctant in its adoption of the new regulations. Some countries have been very eager to mark themselves out as leaders in the trading of cryptocurrencies. Malta is sometimes known as a ‘blockchain island’, Singapore’s regulation is amongst the most progressive, and Switzerland has great crypto credentials (although these have been damaged more recently). Australia meanwhile, represents the middle-ground. Not out front, or behind, this is a country where cryptocurrencies’ potential as game changers is still to be discovered. Once the currencies have grown in legitimacy and their reputation of disruptive force has dissipated, they’ll find their place in the Australian economy.

Writers Wanted

Australia's states have been forced to go it alone on renewable energy, but it's a risky strategy

arrow_forward

The missing middle: puberty is a critical time at school, so why aren’t we investing in it more?

arrow_forward

A Beginner’s Guide To Caring For Your Lawn

arrow_forward

The Conversation
INTERWEBS DIGITAL AGENCY

Politics

Prime Minister Interview with Ben Fordham, 2GB

BEN FORDHAM: Scott Morrison, good morning to you.    PRIME MINISTER: Good morning, Ben. How are you?    FORDHAM: Good. How many days have you got to go?   PRIME MINISTER: I've got another we...

Scott Morrison - avatar Scott Morrison

Prime Minister Interview with Kieran Gilbert, Sky News

KIERAN GILBERT: Kieran Gilbert here with you and the Prime Minister joins me. Prime Minister, thanks so much for your time.  PRIME MINISTER: G'day Kieran.  GILBERT: An assumption a vaccine is ...

Daily Bulletin - avatar Daily Bulletin

Did BLM Really Change the US Police Work?

The Black Lives Matter (BLM) movement has proven that the power of the state rests in the hands of the people it governs. Following the death of 46-year-old black American George Floyd in a case of ...

a Guest Writer - avatar a Guest Writer

Business News

Nisbets’ Collab with The Lobby is Showing the Sexy Side of Hospitality Supply

Hospitality supply services might not immediately make you think ‘sexy’. But when a barkeep in a moodily lit bar holds up the perfectly formed juniper gin balloon or catches the light in the edg...

The Atticism - avatar The Atticism

Buy Instagram Followers And Likes Now

Do you like to buy followers on Instagram? Just give a simple Google search on the internet, and there will be an abounding of seeking outcomes full of businesses offering such services. But, th...

News Co - avatar News Co

Cybersecurity data means nothing to business leaders without context

Top business leaders are starting to realise the widespread impact a cyberattack can have on a business. Unfortunately, according to a study by Forrester Consulting commissioned by Tenable, some...

Scott McKinnel, ANZ Country Manager, Tenable - avatar Scott McKinnel, ANZ Country Manager, Tenable



News Co Media Group

Content & Technology Connecting Global Audiences

More Information - Less Opinion