Australian cryptocurrency investors are in for a stricter tax season. The Australian Taxation Office (ATO) is reportedly requesting personal and transaction data on up to 1.2 million crypto exchange accounts.
This move comes as part of an effort to identify users who might not be reporting their crypto earnings. The ATO will be collecting information such as names, addresses, birthdays, social media details, transaction history, and wallet addresses.
Australia considers cryptocurrencies as taxable assets, unlike traditional foreign currencies. This means any profits made from selling crypto are subject to capital gains tax.
The ATO’s action follows a period of significant growth in the crypto market. Bitcoin and Ether have seen impressive gains so far this year, and other altcoins have also experienced a surge.
However, the complex nature of cryptocurrency can lead to confusion regarding tax obligations. The ATO acknowledges this and suggests some users might be unintentionally neglecting their tax responsibilities.
Australia isn’t alone in its pursuit of crypto tax collection. Canada’s tax agency is also conducting audits and investigations to recover unpaid crypto taxes. Similarly, Turkey is expected to introduce crypto-related legislation that will establish a framework for crypto taxation.
The news comes amidst discussions about potential tax increases on high earners in the United States. The Biden administration has proposed raising the capital gains tax rate for individuals earning over $1 million annually.
