Why Australia demands client data from crypto exchanges?
The Australian Taxation Office (ATO) has stepped ahead to appeal for personal data and transaction-related information from cryptocurrency exchanges. i.e. Australia demands client’s data from crypto exchanges. This move potentially has involved up to 1.2 million accounts. The primary goal is to improve enforcement against individuals who have been neglecting crypto tax obligations in the time of the increasing popularity of digital tokens.
The ATOs identify that the data is focused on specified traders who did not report on their crypto exchanges or the use of cryptocurrency for purchases of goods and services. Admitting the difficulty of the crypto industry, the ATO understands that there may be a real lack of awareness among individuals regarding their tax responsibilities, hence Australia demands clients’ data for further processing.
ATO highlights the potential for individuals to utilize unnamed cryptocurrency transactions to avoid tax obligations as an issue. This calm purchasing of crypto assets with wrong information could attract those looking to circumvent tax laws.
Australia demands clients’ data involving personal details and transaction specifics from cryptocurrency exchanges. Which includes information such as DOB, phone numbers, social media accounts, bank accounts, wallet addresses, and the type of cryptocurrency involved.
In Australia, digital currencies are treated as assets rather than foreign currency for tax purposes. Consequently, investors are responsible for capital gains tax on profits from selling crypto assets and on digital asset trades.
The rise of crypto assets in Australia is seen. The 2022 treasury reports revealed a significant involvement with digital asset transactions, with over 800,000 Australian taxpayers engaged in the existing three years. Remarked as there was a substantial 63% increase observed in 2021. Moreover, Australia has been expanding its accessibility to digital assets since September 2022 by consistently increasing the number of cryptocurrency ATMs.
Currently, the country boasts over 1,000 such machines, reflecting a significant expansion in accessibility to digital assets.
