Australian Tax Authorities Are Coming After The Crypto Market

When people trade in markets that the government doesn’t have a complete grasp on, it starts to get worried about its tax revenue.

The Australian Tax Office (ATO) blew the warhorn on the cryptocurrency market by rounding up a task force for the surveillance of cryptocurrency transactions entering and leaving the country.

“We are consulting with key stakeholders who have expressed an interest in tax issues relating to cryptocurrencies. We will discuss common queries and scenarios, practical issues and the tax implications for current and anticipated future developments in relation to cryptocurrencies,” said a spokesperson for the ATO.

Australian banks are reportedly working with the ATO and AUSTRAC—the Australian Transaction Reports and Analysis Centre—to help provide insight on locating the endpoints of cryptocurrency transactions.

A number of these banks have allegedly frozen investors’ accounts over what they suspected was activity tied to cryptocurrencies at the end of last month.

“When thought of purely as a payment instrument, it seems more likely to be attractive to those who want to make transactions in the black or illegal economy, rather than everyday transactions,” he said.

Although the Australian government has been rather quick to shrug its shoulders on the whole cryptocurrency phenomenon, these more recent moves establish a precedent that may lead to sweeping regulations on exchanges and the finance industry that will target this market.