The global digital assets industry is dealing with <a href="https://news.todayq.com/sec-takes-aim-at-robinhood-faces-lawsuit-threat/">regulatory challenge</a>s pushed by the biggest of the financial watchdogs. In the latest move, Australia’s tax office seems to be intensifying its efforts to crack down on cryptocurrency linked tax evasion. Australia tax watchdog makes move against crypto 
As per reports, the Australian Taxation Office (ATO) is seeking personal data and transaction details from up to 1.2 million accounts across various crypto exchanges. A notice issued by ATO last month suggests that the authority is aiming to identify traders who have failed to report their crypto transactions. This act might be done to avoid tax obligations. 
The authority highlighted the complex nature of the crypto industry while acknowledging that many users and holders may be unaware of the tax rules implied in the country. It added that anonymity linked with the crypto trading transactions would eventually attract some individuals who will try to evade taxes. This can be done by filling out false details. 
The report mentioned that the ATO had requested personal data that includes details such as date of birth, phone numbers, and social media accounts. However, it also includes transaction specifics like bank accounts, wallet addresses, and the type of crypto involved.&nbsp; 
It is important to note that Australia considers digital currencies as assets for tax purposes subjecting investors to capital gains tax on profits from selling or trading crypto assets. Not for the first time 
The popularity of digital assets has boomed worldwide and a surge can be seen in Australia with an increase in transactions reported in recent years. In order to protect users from crypto collapses like FTX, the government proposed regulations in 2023. It required platforms with over Aus $5 million in assets to get a financial services license. 
Approximately one in four Australians currently own some form of cryptocurrency, according to government data. The proposed reforms aim to increase oversight of digital asset platforms and reduce the risk of collapses that could result in financial losses for users. 
If enacted, licensed digital asset platforms would be subject to Australian financial services laws, ensuring compliance with solvency requirements, transparency standards, and measures to manage conflicts of interest. The government is seeking feedback on its proposal, with plans for further consultation on potential legislation in 2024. 
The global crypto market dropped by around 2% over the last day to stand at $2.5 trillion. Its 24 hour trading volume stands at around $86.7 billion.

Australia’s Tax watchdog seeks data of 1.2M crypto accounts

Todayq News

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