Australian Government shows its support for digital currencies

Australian Government shows its support for digital currencies

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Not long ago, bitcoin has managed to once again break its all-time high, after it managed to trade at above $1,600. The recent spikes in the value of the digital currency is bringing about a lot more attention from governments, which are trying to deal with the change, and quickly find how digital currencies will impact the traditional financial system.

Recent reports indicate that the Australian Government is finally trying once again to get rid of the double taxation problem associated with bitcoin in the country. For those who do not know, more than a year ago, Australia pledged to solve to digital currency policy dilemma, which made businesses operating in the region, liable for paying goods-and-services taxes for all bitcoin being sold, together with the taxes associated with taking bitcoin as a method of paying. Because of this unnatural policy, numerous business in Australia decided to not accept bitcoin as a method of payment for their goods and services, as this would’ve been the only way to avoid being double-taxed for registered digital currency transactions.

However, according to a few statements made by officials in the Government, it seems like Australia is finally consulting with a fintech advisory group, on how they should go ahead and make changes that will fix the issue. It’s important to point out the fact that regardless of the decision and recommendations, actual material changes depend based on the actions carried out at a provincial level. The document quoted that: “Any change to the GST treatment of digital currencies is subject to formal state and territory agreement.”

Luckily, in the document, the Australian Government also decided to mention its support for the digital currency space in the country, and declared that it’s actively planning to find a way to regulate digital currency exchanges under the AML and KYC statues. In the long run, this will help keep customers safe, stop money laundering via digital currencies, and will also aid the overall development of digital currencies in the country. Thus, this represents one of the latest signs that Australia doesn’t have something against Bitcoin, and it’ll be happy to create an environment that can help accommodate both fiat and digital currency with ease.

Further reports indicate that the project to get rid of the taxes is on track, and that the government will soon make a decision on whether it’ll be focused on specific regions of the country, or issued as a full-scale use decision.

Based on everything that has been outlined so far, what do you personally think about the statute of bitcoin in Australia, and the latest developments from the continent? Let us know your thoughts in the comment section below.