In this section we looked at regulations governing cryptocurrency use and trading, overseen by the Australian Securities and Investments Commission (ASIC) and the Australian Transaction Reports and Analysis Centre (AUSTRAC).
These regulations ensure exchanges comply with financial laws and Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) rules. For tax purposes, the Australian Taxation Office (ATO) treats cryptocurrencies as property, subjecting transactions to Capital Gains Tax (CGT).
Disposing of cryptocurrency requires reporting capital gains or losses, and earnings from mining or staking must be declared as income. Proper record-keeping of all transactions is essential for compliance, and third-party tools like Koinly, Crypto Tax Calculator, Syla, and Vault Accounting can help.
Common tax reporting mistakes include failing to report all taxable events and income. Seeking advice from tax professionals who specialise in crypto is beneficial for understanding obligations and ensuring compliance.
Always stay informed and consult experts for accurate tax management.
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