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Digital Economy:
What will the global market get

Australia affirms the central principle of regulators: implement it, though control it

10 July 2018   |  in Regulation   |  in Regulation
Australia affirms the central principle of regulators: implement it, though control it

“Australia somehow follows the footprints of South Korea concerning the crypto industry. On the one hand, the governments are looking forward to implementing blockchain technologies, but on the other hand — they strictly regulate all initiatives and activities in this sphere,” — says Jay Jeehan Kim, CEO at "HANBITCO", Crypto Exchange / Vice Chairman at Korea Blockchain Association & Head of Crypto Exchange Committee in his exclusive interview to Bitnewstoday reporters.

Read the whole interview with Jay Jeehan Kim — a closer look at the problem of the relationship between regulators and crypto industry in South Korea and worldwide.

As Bitnewstoday wrote earlier, the Australian government signed an agreement with tech giant IBM to cooperate in the field of development of the digital economy. As a result, Australia is to become a leading country regarding the new technology implementation in the sphere of public administration and social environment.

However, the seeming loyalty for blockchain innovations is just on the one side. Australian authorities are on their way to tax those involved in cryptocurrency trading. Particularly, the Australian Tax Office (ATO) considers cryptocurrencies as assets, and this means they are due to the capital gains tax law.

The representative of ATO, ATO acting deputy commissioner Martin Jacobs gave an interview to Australian Financial Review and said that: “Where people attempt to avoid these obligations deliberately we will attempt to take action. We have a range of existing powers that are designed to address unexplained wealth and conspicuous consumption that may arise through profits derived through cryptocurrency investment.”

The position of authorities is quite understandable: if the profit exists, it shall be taxable. And there’s no one to avoid that, according to Jacobs, they plan to track the money transfers, including offshores. The Australian Government is joining forces with USA, Canada, the Netherlands and the United Kingdom to oppose cryptocurrency related crimes.

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