Australia’s tax department has demanded personal information and transaction records for up to 1.2 million accounts on cryptocurrency exchanges.
Australia’s tax agency has requested personal data and transaction details for up to 1.2 million accounts from crypto currency exchanges in an effort to crack down on users who may be neglecting to pay their taxes in the midst of increased interest in digital currencies.
In a notice released last month, the Australian Taxation Office (ATO) stated that the data will assist in identifying traders who failed to declare the exchange of crypto assets or when they traded them for currency and used it to pay for goods or services.
The ATO stated that the complexity of the cryptocurrency market can result in a genuine lack of awareness of tax requirements.
“Also, the ability to purchase crypto assets using false information may make them attractive to those seeking to avoid their tax obligations,” it warned.
Personal information such as the date of birth, phone numbers, social media profiles, and transaction details such as bank accounts, wallet addresses, and coin types will be requested.
Australia taxed digital currencies as assets rather than foreign currency. This means that investors will have to pay capital gains tax on profits made from selling crypto assets and trading digital assets.
Crypto assets have grown in popularity in Australia. According to a government study released in 2022, more than 800,000 Australian taxpayers traded in digital assets in the previous three years, with a 63% increase in 2021.
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