Previously in Australia it was determined that Bitcoin was an intangible asset, but now the government is moving toward a position that Bitcoin and other cryptocurrencies should be treated the same as any other currency as far as Goods and Services Taxes are concerned.
Local press outlets expect a Senate committee centered on digital currencies will make the recommendation in the coming days. Treating Bitcoin as a regular currency could have severe implications on the technology in some sectors, such as Bitcoin trading. Many viewed the previous position as an “intangible asset” to be a way for the country to stimulate Bitcoin businesses. The rulings, of course, do not only affect Bitcoin exchanges, but any company dealing with digital assets.
Australian Senator Sam Dastyari told the Australian Financial Review:
The amount of revenue in question is negligible. The opportunities for trade, investment, high salaries and world-leading skills are far more important, and I urge the states to work with the Commonwealth to make what amounts to simple change.
Dastyari’s position indicates that there is not full support in the Senate for regulating Bitcoin at present. It seems that some representatives would prefer to explore what financial benefits the technology might bring to Australia, rather than scare it away with regulation.
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Last modified: May 21, 2020 11:03 AM UTC