Australian Tax Office To Impose Tax On Cryptocurrency

The Australian Tax Office (ATO) is establishing a task force that will seek to ensure cryptocurrency investors are paying the correct amount of tax
10 January 2018   765

The Australian Tax Office (ATO) is establishing a task force to monitor cryptocurrency transactions, according to a report in The Australian Financial Review.

The taskforce will seek to ensure cryptocurrency investors are paying the correct amount of tax. It is stated that a team of specialists across tax law, technology, banking and finance will devise strategies to follow the money on gains made from investment in digital currency.

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.

 

Spokesman

The Australian Tax Office

The first meeting of the ATO and various industry experts is expected to take place next month.

Recently, we have reported that the Swiss government has announced the creation of a new group to strengthen its regulatory framework related to blockchain startups and ICOs.

Bank of America: Cryptocurrencies Are a Threat

Bank of America (BoA) has admitted to US regulators it can not pretend any longer that cryptocurrencies are not a threat
23 February 2018   124

On February 22, the report was filed with the US Securities and Exchange Commission (SEC). It listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces as it heads into the new fiscal year. Crypto adoption was on the list for the first time.

Bank of America (BoA), which recently banned purchasing of crypto with credit cards, stated that this and other similar policies could cost the bank clients.

Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.

The second largest bank in the U.S. said that adoption of cryptocurrencies could require the bank to make “substantial expenditures” to update its existing services and remain competitive with upstart firms.

The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.

According to the Bank of America, cryptocurrencies could limit the institution’s ability to comply with anti-money laundering regulations.

Eventually, this is one of the first public admissions that financial institutions are beginning to worry that mass cryptocurrency adoption could one day become a reality.