Australia laws Regulations Cryptocurrency
Regulators have raised serious concerns across the world, especially in the US about cryptocurrencies. The US SEC or Securities and Exchange Commission has even considered cryptos as commodities to ban their trading in America. This has brought support from other parts of the world as well like India and Europe, who are planning to ban crypto or launch their own Central Bank Digital Currencies (CBDCs) .
However, in one of the island countries, Australia, we have seen buying trends mushrooming despite so much hostility for cryptocurrencies in other parts of the world. Traders have skyrocketed in 2021 with 13% of the Aussies investing in Bitcoin, and another 6% of the population holding on to Ethereum as their preferred cryptocurrencies for investment. Therefore, it becomes necessary to know every development in the cryptosphere in Australia since other parts of the world have vehemently obstructed their adoption. We have covered a few things that would help you be decisive whether to buy/sell cryptocurrencies in Australia or not.
Table of Contents
Under Australian Securities and Investment Commission (ASIC), the regulatory body in Australia, cryptocurrencies have been identified as property and must be taxed accordingly. The financial body in Australia has imposed Capital Gains TAX (CGT) on buying/selling cryptocurrencies. Australian Transaction Reports and Analysis Centre (AUSTRAC) has taken the responsibility to counter money laundering and terrorism funding from cryptocurrency funding. Any enterprise or corporations which are offering cryptocurrencies or dealing in cryptocurrencies must hold Australian Financial Services (ASF) licence for trading. For the purpose of launching ICO, IEO, ILO and IDO, the respective issuer must specifically clarify their crypto asset as a financial product before launching the same in the market or exchanges.
After the government ruling in favor of digital assets, buying cryptocurrencies has been safe in Australia. Despite this leverage, sellers or investment managers must comply with the Australia’s Financial Services Regulatory Regime. Those exchanges that have abided by these specific requirements are safe where investors can look forward to cryptocurrency buying in Australia.
There are multiple exchanges which are quite popular in Australia from where you can buy cryptocurrencies. However, before you head start to buy cryptocurrencies, you must check company’s authenticity, exchange’s user interface (UI), user-experience (UX), fees, spread and hidden charges, customer support, list of cryptocurrencies, trading features, DIYs or educational contents, payment method and their features to help you buy with fiat.
eToro, Coinbase, Bittrex, CoinMama, Kraken, KuCoin, BitFinex and OKEx are a few names which have simplified buying cryptocurrencies in Australia with fiat currencies. These exchanges have all the above features which are mentioned to help ease buying cryptos for beginners and professional traders. After you are done buying your crypto, the next step is to keep it safe and secure.
Cryptocurrency transactions cannot be rolled back or reversed. That said, you wouldn’t like to lose all your coins due to hacks or errors. Therefore, protecting your cryptocurrencies should be your top priority. RateCity recommends a few ways with which you can protect your valuable cryptocurrencies like Bitcoin, Ethereum, Ripple, Cardano and many others.
Paper wallets are one of the safest ways to protect your cryptocurrencies. They are available in QR code form as well which you can store off-the-internet. MyEtherWallet allows you to make paper wallets for storing your cryptocurrencies safely. Despite giving so much security, even paper wallets are vulnerable to damage or wrong handling. Hence, you must store them in a safe which is not easily accessible by others at your home or office.
You can download software wallets on your computer and mobile phones and store your cryptocurrencies. These are more safer than exchange based wallets which are more prone to hacking or fund mismanagement. With the help of software wallets, there is the possibility of managing your funds from various devices.
Hardware wallets are considered the safest forms of wallets available for storing cryptocurrencies. In the past, they didn’t have the seed phrase for restoration but present day wallets like Ledger Nano, and Trezor come with this functionality. Using these hardware wallets, you can keep your private and public key away from the Internet. For trading purposes, you can link your wallet to your device and initiate the buying and selling. Though they provide comprehensive security and full proof protection, the cost proposition is the only concern and it is advisable to hold them only if you have a lot of investment in cryptocurrencies that you wish to protect.
Is bitcoin is legal in Australia?
In Australia, Bitcoin has been declared legal by the governor of the Reserve Bank of Australia (RBA) since December 2013.
What is the best Bitcoin wallet in Australia?
CoinJar Bitcoin Wallet is one of Australia’s most popular cryptocurrency wallet to securely store Bitcoin, Ripple, Ethereum, Litecoin and more.
Which Cryptocurrency is best to invest Australia in 2020?
What is the best crypto exchange in Australia?
Can I buy a house with Bitcoin in Australia?
Yes, you can buy real estate with Bitcoin.
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