Australia to Track Down Tax Evaders

Australian Tax Office (ATO) will seek out bitcoin investors with outstanding tax liabilities  
01 March 2018   569

According to a report, the Australian Tax Office (ATO) will seek out bitcoin investors with outstanding tax liabilities. Will Day, ATO deputy commissioner stated that transparency will be achieved due to forthcoming AML measures. It will grant the tax office increased probing powers next month.

The new policy will provide oversight of the crypto market and will include compulsory 100-point identification checks for crypto traders. At the moment, ATO does not consider bitcoin as a legal tender.

The new measures will extend the jurisdiction of the Australian Transaction and Reports Analysis Centre (AUSTRAC). The financial agency will be able to access cryptocurrency exchange records. Besides KYC and AML, the exchanges must report about suspicious transactions, as well as any cash transaction in excess of 10,000 Australian dollars.

According to a member of the National Tax Liaison Group and CPA Australia chief, Paul Drum, traders are curious whether bitcoin investments are exempt from capital gains tax personal asset rules.

Where you use bitcoin to purchase goods or services for personal use or consumption, any capital gain or loss from disposal of the bitcoin will be disregarded (as a personal use asset) provided the cost of the bitcoin is $10,000 or less.

The Australian Tax Office

Paul Drum also stated that the effectiveness of the ­anonymity of Bitcoin and other cryptocurrencies is starting to fade. These coming changes mean that people shouldn't ­assume they can hide forever behind blockchain technology, nor should they ­assume there are no tax consequences.

SEC to Need More Info on BTC ETF

SEC is gathering more input from the public – to date, according to the agency, more than 1,400 comments have been submitted
21 September 2018   170

The US Securities and Exchange Commission (SEC) announced the beginning of a formal process for considering the application for the creation of bitcoin-ETF from the New York companies VanEck and SolidX. Nevertheless, the agency appealed to the community for more information. This is stated in the document published on the SEC website.

Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.

The US Securities and Exchange Commission

At the moment, the SEC received about 1,400 comments.

According to the document, the Chicago Board Options Exchange (CBOE) has signed an agreement on the exchange of data on bitcoin transactions, trading and the state of the market with the cryptocurrency trading platform with Gemini.

The agency asked commentators to clarify the position of Gemini in the digital currency market and assess the likelihood of increased volatility at this site in connection with possible trades of bitcoin-ETF.

So, before September 30, the department had to decide on whether to approve, deny or initiate the proceedings. The SEC chose the latter, which is likely to delay the process until the next year.