Cryptocurrency - Mike Crowley & Associates

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Cryptocurrency

 

Unless you have been living under a rock Cryptocurrencies are on the move. It started with Bitcoin launching in 2009. It is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. With us forever hurtling towards a cashless society it is becoming the currency of the future. Cryptocurrency has become so popular that in the beginning one Bitcoin was worth less than $0.01 and as of June 2018 one Bitcoin is worth AUD$9064.

 

With a new currency comes a new set of problems. What about tax obligations? This seems like it would be the first year that that accountants will have clients with profits from the cryptocurrency as this is the first year the currency has boomed. The ATO has recently injected $318.5 million into the black economy in which cryptocurrency has played a strong role in.

According to the ATO cryptocurrency such as Bitcoin is “neither nor money nor Australian or foreign currency. Rather, it is property and is an asset for capital gains tax (CGT) purposes. Other cryptocurrencies that have the same characteristics as Bitcoin will also be assets for CGT purposes and will be treated similarly for tax purposes.

Bitcoin offers a knowledge hub for those wanting to know more about the currency and how to get started. Check out their KNOWLEDGE HUB.

If you doubt the growth of Cryptocurrency in our modern society check this town in Queensland that is Australia’s first digital currency friendly town.