Obeying the surging adoption and popularity of cryptocurrencies, several nations have initiated their path toward the formation of new rules, regulations, and regimes to impose taxes on digital assets.
In a recent development, the treasury of Australia has opened a public consultation to collect feedback on the implementation of the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF).
The move seems to be influenced by the growing tax envisioned over cryptocurrencies and related products worldwide. Activities related to tax envision have surged over the past few years and in order to curb these activities the nation has geared up to strengthen the finance system.
As per a person aware of the matter, the released paper aims to gather the sentiments of the public over it, and whether its implementation will help in the domestic tax regime.
Since the beginning of this year, the adoption of digital assets has surged significantly reaching new heights.
Australia’s implementation of the Crypto Asset Reporting Framework (CARF) will mandate that crypto intermediaries, including exchanges and wallet providers, report certain crypto transactions to tax authorities.
This will involve providing details on the buying or selling of crypto assets. According to the consultation paper, the government anticipates that CARF reporting will begin in 2026.
Australia is also on the list among the nations with the highest number of cryptocurrency users and holders, as of recently roughly 5.5 million Australians own digital assets, Dogecoin is 4th most owned in the nation and Bitcoin is one of the most adopted.
Will the Australian Crypto Market Grow Further?
As per several reports, Australian citizens are considered as one of the most talented and early adopters of technologies, it has an appreciated number of cryptocurrency users. It is worth noting that the crypto market of the nation is expected to grow at an unprecedented pace in the coming years.
The Australian Securities and Exchange Commission and other financial regulators have a harsh attitude towards cryptocurrencies. In the past few months, Australian police and regulators have joined hands with blockchain analysis and security firms to track illicit activities linked with cryptocurrencies.
Chainalysis has recently helped the police enforcement of Australia to unveil frauds, Ponzi, and other on-chain activities carried out from the region. In the early days when Bitcoin was majorly used in the gambling market and illicit, it was one of the most used crypto in Australia and gained traction among its nationals.
Most recently it was reported that a Singapore-based digital asset platform, Crypto(dot)com, has recently purchased the Australian brokerage and trading company, Fintek Securities, for an undisclosed amount.
As per finance experts, the crypto market is expected to grow at an appreciable pace in the coming times.
One primary reason behind the expectations is the growing price of Bitcoin which is soon expected to touch a milestone of $100k. When writing it was trading at $98,788 at the same time it was trading above 20, 50, 100, and 200 exponential moving averages.
