By Derrick Broze
Since the inception of Bitcoin, and cryptocurrency in general, there has been much debate about whether or not it should be counted as an actual currency, property, or something else altogether. That might be changing with a recent announcement from the Australian government.
An investigation by the Australian government has recommended that cryptocurrencies be treated as money.
The move will simplify taxes for people who use Bitcoin, as well as implement new rules for Bitcoin exchanges to monitor customer activity in search of money laundering and terrorism activity.
Reuters first reported on the recommendations, stating that the changes “underscore governments’ growing acceptance of the role of so-called ‘cryptocurrencies’ around the world.”
If the new rules are implemented Australia would become the third nation to implement a tax for purchases using Bitcoin, after Spain and the United Kingdom.
Australia’s adjustments also align with Canada and Singapore, after both nations changed their anti-money laundering and counter-terrorism financing laws to include cryptocurrencies.
The report stated that if Bitcoin were treated as a tradable commodity rather than a currency “it would create ‘a double taxation effect that has placed an additional burden on Australian digital currency businesses.'”
Currently, Australians pay sales tax when they buy cryptoccurrency and again when they purchase something using the currency.
Before any changes can be made to the country’s sales tax all eight of Australia’s state governments and the Federal government must agree.
The changes are absolutely a sign that Bitcoin and other cryptocurrencies are growing in acceptance, both by the general public and the governments of the world. But is taxing a currency that started as an experiment in anonymity and tax-free trade really a win?
For those who use cryptocurrency as a strategy to fight their nation’s central bank controlled, fiat currency, taxes and regulation are definitely a step backwards.
What are your thoughts? Is this a positive gain for the crypto community? Or is this the beginning of a hostile takeover by State force? Leave your comments below.
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