Key Takeaways
The ATO is ramping up efforts to ensure tax compliance, requiring crypto exchanges to provide user data from over 1.2 million accounts;
The ordered data includes names, addresses, birthdates, and transaction logs to help identify traders who haven’t reported taxable crypto transactions;
The ATO’s regulations now cover more crypto interactions.
The Australian Taxation Office (ATO) is intensifying its efforts to reinforce tax compliance.
It has mandated that crypto exchanges submit personal details of over 1.2 million accounts.
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The information that was ordered to be provided reportedly includes users’ names, addresses, birthdates, phone numbers, social media accounts, and transaction logs.
The ATO stated that this directive would help identify traders who may have failed to report transactions involving crypto, whether it be trading digital assets for fiat currencies, purchasing goods and services with them, or other taxable exchanges.
Acknowledging the nature of the crypto industry, the ATO noted:
The ability to purchase crypto assets using false information may make them attractive to those seeking to avoid their tax obligations.
Therefore, the ATO aims to curb tax evasion and ensure adherence to capital gains tax requirements with the order.
Last year, it expanded the scope of what falls under capital gains taxation, clarifying that this includes token interaction with decentralized lending protocols and wrapped tokens.
With these regulatory measures, Australia makes a shift in how digital assets are managed under national tax laws.
Australia has also previously put its focus on regulating crypto exchanges, with the Australian Treasury initiating steps to introduce a regulatory framework that would enforce the existing financial service laws.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
