The term cryptocurrency is generally used to describe a digital asset in which encryption techniques are used to regulate the generation of additional units and verify transactions on blockchain. Cryptocurrency generally operates independently of a central bank, central authority or government.
The creation, trade and use of cryptocurrency is evolving rapidly. This information is the Australian Taxation Office's (ATO) view of the income tax implications of common transactions involving cryptocurrency. Any reference to 'cryptocurrency' on the ATO guide refers to Bitcoin, or other crypto or digital currencies that have similar characteristics as Bitcoin.
If you are involved in acquiring or disposing of cryptocurrency, you need to be aware of the tax implications. These vary depending on the nature of your circumstances.
Everyone involved in acquiring or disposing of cryptocurrency is required to keep records in relation to their cryptocurrency transactions.
If you have dealt with a foreign exchange or cryptocurrency there may also be taxation consequences for your transactions in the foreign country.
For additional information on cryptocurrency, including transacting with cryptocurrency, cryptocurrency used in business, records keeping and data matching programs, please visit the ATO webpage.
We have an extensive knowledge base in relation to all things Crypto, if you have any questions or would like assistance and advice with your Cryptocurrency please do not hesitate to contact our office.