Sun, June 30, 2024 at 19:35

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some significant news regarding the Australian Tax Office (ATO) and its new measures to track crypto tax evaders.

  • 
• Annie

  • Oh, that sounds interesting!

  • What exactly are these new measures?🤔

  
• 

  Kang-hoon

  • Starting this year, the ATO has implemented a tracking program that will identify individuals who fail to report their crypto gains.

  • Today marks the last day to file taxes in Australia, so it's quite timely.

• Annie

  • Wow, so they are really cracking down on this.

  • How will they track the crypto users?

  
• ADward

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• 

  Kang-hoon

  • The ATO will collect data from major crypto exchanges like Coinbase, Binance, and Coinspot, among others.

  • They will analyze transaction data from the past decade, including user names, email addresses, and even social media accounts.

• Annie

  • That's quite comprehensive!😮 How many users are they targeting?

  
• 

  Kang-hoon

  • They aim to track all 1.2 million crypto users within their jurisdiction.

  • While most users do report their gains, the ATO wants to ensure that the minority who don't are held accountable.

• Annie

  • I see.

  • What about those who invest in Bitcoin ETFs?

  • Are they affected too?

  
• 

  Kang-hoon

  • Yes, investors in Bitcoin ETFs must also pay taxes on their gains, just like any other securities instrument.

  • Australia has two Bitcoin ETFs listed on different stock exchanges.

• Annie

  • Got it.

  • But what about the users who will receive refunds from the bankrupt crypto firm Celsius?

  • How will that be handled?

  
• 

  Kang-hoon

  • That's a complex issue.

  • There's no clarity yet on whether these refunds will be taxed.

  • Many users might have netted significant profits due to the price rises of Bitcoin and Ether since Celsius went bankrupt.

• Annie

  • So, if they do owe taxes, how will they determine the cost basis?

  • Will it be based on the acquisition date or the bankruptcy date?

  
• 

  Kang-hoon

  • That's a genuine question many ex-Celsius users are struggling with.

  • The ATO hasn't provided clear guidance on this matter yet, which adds to the confusion.

• Annie

  • It sounds like a lot of uncertainty for crypto investors.😕 What do you think will be the overall impact of these new measures on the market?

  
• 

  Kang-hoon

  • In the short term, these measures could be seen as a negative development.

  • Increased scrutiny and potential tax liabilities may deter some investors from participating in the crypto market.

• Annie

  • That's unfortunate.

  • Do you think this will lead to a decrease in crypto investments in Australia?

  
• 

  Kang-hoon

  • It's possible.

  • Regulatory uncertainty and the fear of enforcement actions could make investors more cautious.

  • 

  • This might lead to a temporary dip in crypto investments.

• Annie

  • Thank you for the detailed explanation, Kang-hoon.

  • This news seems to be quite a challenge for crypto users.😟

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • Yes, it's definitely a challenging situation.

  • Investors will need to stay informed and compliant to navigate these new regulations effectively.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.