A new inquiry from the Australian government is looking to change current tax codes for Bitcoin in Australia, which are proving to be controversial and counter-productive, hurting businesses and growth. The initiative seeks to establish similar progressive standards as in nations like the UK, Canada, and Singapore, where Bitcoin is considered money.
‘A positive step’
Bitcoin regulation has been, and will continue to be, a hot topic as it continues to gain momentum and interest in personal and corporate finance, worldwide. This issue has been a main focus of the Australian Senate over the past year, as bitcoin is becoming an increasingly popular commodity in the Oceanic country.
It is attracting business to the nation, and bitcoin ownership in Australia is among the world’s highest per capital, with 7% of the world’s bitcoin circulation running through the continent nation.
The problem recently has come with the addition of the GST, or Goods and Service Tax, levied on Bitcoin transaction by Australia’s Taxation Office last year. This labeled Bitcoin an “intangible asset” causing a double-taxation effect for Bitcoin businesses.
Coinjar recently moved their operations from Australia to the UK due to the effect of these new regulations. The United Kingdom has