Australian tax regulators request customer data from crypto exchanges

Crypto regulations in Australia: Australia's tax authorities are intensifying efforts to ensure compliance among cryptocurrency users by requesting personal data and transaction details from crypto exchanges. The Australian Taxation Office (ATO) has targeted up to 1.2 million accounts in its crackdown on potential tax evasion related to digital tokens, reflecting the growing interest in this financial sector.

The ATO's notice, issued recently, aims to identify traders who may have neglected to report their crypto transactions or failed to disclose profits made from trading or using digital assets for payments. Recognising the complexities of the crypto industry, the ATO acknowledges a genuine lack of awareness among users regarding their tax obligations.

Furthermore, the ATO warns that the anonymity associated with purchasing crypto assets using falsified information can attract individuals seeking to evade taxes.

The requested personal data includes various identifiers such as date of birth, phone numbers, and social media accounts, along with transaction specifics like bank accounts, wallet addresses, and the type of coins involved.

Australia classifies digital currencies as assets for tax purposes rather than foreign currency, subjecting investors to capital gains tax on profits generated from selling or trading digital assets.

The popularity of crypto assets in Australia has surged in recent years, with a treasury report revealing significant growth in the number of taxpayers engaging in digital asset transactions, particularly in 2021.

(With Reuters inputs)