According to the latest information on the website of AUSTRAC (Australian Transaction Reports and Analysis Centre), digital currency exchanges must have to be registered with authorities now and should also commit to several identity checking and reporting procedures. It’s been confirmed by the Australian government as well that the Australian cryptocurrency exchanges are abided by the new AML (Anti-Money Laundering) rules.
The Australian authorities are trying their best to close the remaining loopholes in cryptocurrency usage, concerning identity management and taxation of cryptocurrency. In contrast to a backdrop of discontent due to such sharp upsurge in scams, last week, the Australian Taxation Office was asked for taxpayer’s contribution into how deductions rising from the cryptocurrency returns should be assembled efficiently.
Meanwhile, exchanges now must follow the four prime rules so that they can function above board, as a part of the security reformation. Following are the four rules:
- Identification and verification of identities of their clients.
- Keeping particular records for 7-years.
- Accepting and maintaining a CTF/ AML program for the identification, alleviation, and management of terrorism financing perils and money laundering.
- 6 months refinement period that will escort the new regulations, in which AUSTRAC will be a lot more compassionate on operators who “fall short of requirements.”
- Reporting to AUSTRAC sceptical issues, and transactions linked to the physical currency of $10,000 and even more.
The laws relating to cryptocurrency exchanges regulations in Australia are also getting stricter, while the government has guaranteed that the investors wouldn’t feel left out. The Australian government took feedback from the public to know what their views are on the cryptocurrency taxation structure and are they going to like it or not.
The ATO (Australian Tax Office) had also posted:
“We’ve timed this consultation to coincide with an update to our website, which should address some of the feedback we have received to date about our cryptocurrency guidance. We’re eager to hear your feedback about cryptocurrency and its tax implications as the technology may impact how business operates in the future.”
Feedback from Taxpayers
Many governments across the world are getting stricter, especially when it comes to the taxation of cryptocurrencies. Many exchanges are being forced by the governments to disclose the data of consumers and to send out subpoenas to investors who have high net-worth. While many governments are getting stricter, the decision of Australian government to get the feedback from taxpayers before applying these tax laws is notable.