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Tax treatment of cryptocurrencies
The term cryptocurrency is generally used to describe a digital asset in which encryption techniques are used to regulate the generation of additional units and verify transactions on a blockchain. Cryptocurrency generally operates independently of a central bank, central authority or government.
The creation, trade and use of cryptocurrency is rapidly evolving. This information is our current view of the income tax implications of common transactions involving cryptocurrency. Any reference to ‘cryptocurrency’ in this guidance refers to Bitcoin, or other crypto or digital currencies that have similar characteristics as Bitcoin.
If you are involved in acquiring or disposing of cryptocurrency, you need to be aware of the tax consequences. These vary depending on the nature of your circumstances.
Everybody involved in acquiring or disposing of cryptocurrency needs to keep records in relation to their cryptocurrency transactions.
If you have transacted with a foreign cryptocurrency exchange you may have tax responsibilities in another country.
Find out about:
- Transacting with cryptocurrency
- Cryptocurrency used in business
- Record keeping
- Additional information
- Data-matching programs
- ASIC’s Money Smart websiteExternal Link has some useful information on the risk involved in investing in cryptocurrencies
- SMSF investing in cryptocurrencies
- GST and digital currency