Is Bitcoin Legal in Australia? – Cryptocurrency Regulations
A lot of people have started to use Bitcoin in Australia, and that’s great news. After all, it’s only a matter of time that businesses,.
A lot of people have started to use Bitcoin in Australia, and that’s great news. After all, it’s only a matter of time that businesses, companies, and us, the people, must adapt to a better system and technology. Bitcoin, as one of the cryptocurrencies in the world, is helping us with that. Some people buy Bitcoin as a promising investment, some again buy it for updating their payment method.
The problem is, like any new technology in the world before cryptocurrency, there’s still confusion around Bitcoin’s legality, its regulation, and surely, its security. Now to settle those questions, we’ll discuss the answer one by one.
How is Bitcoin regulated in Australia?
Cryptocurrencies have emerged as an alternative way to the traditional financial system, especially after the crisis it had during 2008 when a real estate bubble burst and bankrupt many people, an event that today we know as “The Great Recession“. Although the concept of a decentralized payment network without international borders sounds perfect for the common investor, it is a bit intimidating for the current economic apparatus and fiat currencies.
Blockchain and cryptocurrencies are widely accepted in Australia and unlike the United States government, they have taken a friendlier approach towards them. In fact, there are already a lot of businesses in Australia that accept Bitcoin as a payment method today. While participation in the crypto community is encouraged and developing, the government needs to keep a check to prevent tampering with these digital assets for money laundering, terrorism, or any form of reward for illicit activities.
However, in 2017 the Australian Government declared Bitcoin and other cryptocurrencies legal and recognizes them as property. So cryptocurrency will be taxed now in Australia and citizens will have to report them to Capital Gains Tax (CGT). This means that Australians will be able to freely exchange/buy cryptocurrencies, as long as they report to the tax office.
How is cryptocurrency exchange regulated in Australia?
Logically, exchange companies must follow transparency protocols in order to maintain Bitcoin operations in Australia. The last regulatory measures for cryptocurrency exchange were established in 2018 when AUSTRAC (Australian Transaction Reports and Analysis Center) requested that all exchange platforms operating in Australian territory be registered in its database, to verify users through Know Your Customer procedures ( KYC), maintain a history of the financial activities carried out and comply with the AML / CFT parameters.
Although there are complaints from some sectors of the crypto community, it is necessary to recognize that if anything has changed in regulatory measures in Australia, it is that they are now more flexible (at least since cryptocurrencies had been subject to double taxation), for what we can expect a future with even better laws for cryptocurrency exchange.
How to buy and sell Bitcoin in Australia safely?
Users will be able to buy Bitcoin safely regardless of where it comes from as long as they use a reliable crypto exchange in Australia. There are many exchange platforms to buy BTC tokens, although it is also true that many fraudulent initiatives try to take money from beginning users through scam operations. For this reason, we must first study the company to which we are going to entrust our money.
Making sure that you are using a legitimate platform is not difficult at all, since there are many companies that really provide this service and more. Another detail that should be mentioned is that not all of these sites support any type of fiat currency, which can hinder the purchase process with currencies like AUD. Same goes for selling Bitcoin in Australia.
In this case, the best option to buy Bitcoin in Australia would be to use a local exchange platform with good user policies and low rates, such as Easy Crypto Australia (AU), where you can acquire BTC tokens through direct purchase with AUD (or other cryptocurrencies) and save them in its wallet section. You can pay with bank transfers or the instant payment methods provided by the platform. Orders are processed in less than 2 minutes and the tokens will be credited to your account.
Upon receiving your BTC you can use them to take advantage of price variations, hold them (save them as a long-term investment) or trade if you have that type of experience.
Will Bitcoin ever be classified as illegal?
As the years go by cryptocurrencies such as Bitcoin gain even more prominence as a financial solution for people who know how to put it to better use. When Bitcoin first appeared it had something of a “taboo” around it for its anonymity and decentralization features, which allowed many users to use it for illegal purposes. An example of this is trading with Bitcoin that was established on the Silk Road, a deep web black market, where BTC first boomed.
However, the authorities caught wind of this and began taking steps to prevent users from engaging in these activities using cryptocurrency technology. Eventually, Bitcoin would be incorporated into society as more than just a currency to purchase things anonymously.
Currently, there are multiple businesses that accept Bitcoin in Australia and it can be used to buy air tickets, electronic, cars, tickets to events, clothing, doctor’s consultations and basically anything else that you can buy with fiat currency. This speaks to a giant margin of adoption around this digital asset.
If we analyze the level of progress and acceptance that we have seen in Bitcoin for 10 years (considering that the rate of adoption increases every year), we can deduce that in the near future we will be able to use this cryptocurrency for many other purposes and see it become a refuge to protect the capital of millions of people, as it has already been doing.
Knowing Bitcoin is legal in Australia, is it worth the investment?
If the world’s first countries have already classified Bitcoin as “legal”, it is difficult to imagine that they will reverse the decision and make it illegal, especially once it has been integrated into our economic system and BTC transactions are as common as fiat.
Another important aspect of saving BTC tokens in the long term is the potential gains that you can get without doing anything. This cryptocurrency was created with deflationary technology, which means that instead of losing its value over time, it will increase.
The Bitcoin network undergoes a process called “Halving”, where the mining reward is halved every 4 years. This makes the demand for BTC higher and the supply lower, periodically increasing the price of that currency. The highest peak of the Bitcoin price took place in December 2017, in a bull run that exceeded $ 20,000 USD.
If we think about the fact that we have just experienced another halving and there are many more to come, it is worth taking advantage of that Bitcoin is totally legal and saving some tokens, even if it is little by little.
Now that you finally know and sure about the legality of Bitcoin in Australia, how do you feel about trying it? Do not hesitate to contact Easy Crypto team if you want to buy Bitcoin in Australia legally.
We are always ready to help.
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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
Last updated August 29, 2022