Australia consults OECD for advice on implementing a new framework for crypto taxation, including crypto ATMs.
Australia Consults OECD on Crypto Taxation Framework
Australia is seeking advice from the Organization for Economic Cooperation and Development (OECD) regarding the implementation of crypto taxation. With the world’s largest number of crypto ATMs, Australia is keen to establish a fair and effective tax structure for its growing digital asset market. The country’s Department of Treasury has asked the OECD to provide input on the proposed taxation framework by January next year.
Two Options for Crypto Taxation
The consultations focus on two potential approaches: adopting the OECD’s Crypto Asset Reporting Framework (CARF) or customizing the taxation policy. CARF is a global transparency framework that aims to improve tax compliance by providing authorities with crucial information, including crypto-asset transactions exceeding $50,000.
“The CARF improves visibility of income from crypto assets. This helps increase compliance with local tax laws and deter tax evasion,” the Australian government explained in a report.
CARF’s Role in the Crypto Taxation Framework
CARF requires crypto asset providers, such as exchanges, wallet providers, and ATM operators, to report tax-related data to local authorities. This information could be shared with other global tax bodies to assist in tracking crypto activities, preventing tax evasion, and promoting transparency.
Customizing Australia’s Crypto Taxation Approach
The Australian government is considering whether to implement CARF as it is or create a customized taxation policy. If it opts for a tailored approach, the government could adjust the data required for reporting based on its specific tax goals. This flexibility would allow Australia to target specific areas within the crypto market.
Australia’s Growing Crypto Landscape
Australia’s crypto industry has seen significant growth, with one in five Australians holding cryptocurrencies. The country also boasts a high number of crypto ATMs, which account for 3.3% of the global market share. Major cities like Sydney, Melbourne, Brisbane, and Perth are home to thousands of these ATMs, reflecting the increasing adoption of digital assets.
Additionally, Australian crypto holders reported an average profit of $9,627 in the past year, a 17% increase from 2022. With an expected surge of over two million new crypto investors in 2025, the government’s focus on effective taxation is vital.
Australia’s Crypto Future and Central Bank Digital Currency
Beyond taxation, the Australian government has also sought advice on developing a central bank digital currency (CBDC). This forward-thinking approach aims to align the country’s financial ecosystem with the evolving global crypto and blockchain markets.
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