Australia officially ends double Bitcoin taxation

Australian parliament passes bill to officially remove double taxation of cryptocurrency
20 October 2017   1385

From next year, Australians will no longer have to pay goods and services tax on cryptocurrency purchases.

Thus, this week, both houses of the Australian Parliament passed a Treasury Laws Amendment (2017 Measures No. 6) Bill 2017, that is to eliminate the double taxation of digital currency. The bill now awaits Royal Assent by Australia’s Governor-General, at which time it will become an Act of Parliament.

As detailed, the bill will amend Australia’s tax system, ensuring that digital currency transactions are not subject to two instances of goods and services tax. Previously, Australian users were subject to taxation on both the purchase of digital currency and the use of digital currency for goods and services subject to GST.

The amendments provide that supplies and acquisitions of digital currency are generally disregarded for the purposes of GST. Consistent with supplies of money, supplies of digital currency are only recognized for the purposes of GST if the supply is made in exchange for money or digital currency.
 

The bill’s accompanying explanatory memorandum

Basically, in Australia, digital currency is to receive the same tax treatment as foreign currency in order to "decrease reporting burden on businesses that use digital currency".

US Authorities to Pop BTC Buble, - Giancarlo

According to the former head of the U.S. Commodity Futures Trading Commission, the launch of the Bitcoin futures at CME popped the BTC price bubble
23 October 2019   33

Former head of the CFTC, Christopher Giancarlo made a sensational admission, saying that the launch of the Bitcoin futures on the Chicago Mercantile Exchange (CME Group) was a deliberate action by the Donald Trump administration, designed to burst the cryptocurrency market that had formed by then.

One of the untold stories of the past few years is that the CFTC, the Treasury, the SEC and the [National Economic Council] director at the time, Gary Cohn, believed that the launch of bitcoin futures would have the impact of popping the bitcoin bubble. And it worked.
 

Christopher Giancarlo

Ex-head, CFTC

Chicago Mercantile Exchange (CME) Bitcoin Futures was launched on December 18, 2017. The day before, the price of bitcoin reached its historical maximum in the region of $ 20,000, but over the next months it went down sharply.

On Monday, Giancarlo also spoke at the Pantera Summit in San Francisco, where he stated that the rapid rise in bitcoin prices observed at the end of 2017 marked the formation of the first major bubble after the 2008 financial crisis.

We saw a bubble building and we thought the best way to address it was to allow the market to interact with it.
 

Christopher Giancarlo

Ex-head, CFTC

Giancarlo also believes that the Bitcoin bubble cannot be considered in isolation from the 2008 financial crisis.

Coming out of the 2008 financial crisis, the legit criticism of regulators was along the lines of: Where were they during the expansion of the real estate mortgage bubble, and why didn’t they take steps to pop that bubble when they could have?
 

Christopher Giancarlo

Ex-head, CFTC

According to him, the lessons of history forced regulators to act quickly,

I believe it shows the power of markets to bring discipline to pricess.
 

Christopher Giancarlo

Ex-head, CFTC

Christopher Giancarlo resigned as CFTC chairman in April this year. Earlier this week, current department head Heath Tarbert said that regulated futures for Ethereum will also appear within six months or a year. He also does not rule out the launch of derivatives on other cryptocurrencies.