Australian Tax Office Requests Data from 1.2 Million Crypto Exchange Users

Australian Tax Office Requests Data from 1.2 Million Crypto Exchange Users

Australia’s tax office reportedly seeks personal information and transaction details from up to 1.2 million cryptocurrency exchange users to crack down on potential tax evasion related to crypto trading.

According to a notice issued last month, the Australian Taxation Office (ATO) aims to identify traders who may have failed to fulfil their tax obligations on cryptocurrency trades, as reported by Reuters.

The data sought includes users’ personal information, such as date of birth, social media accounts, phone numbers, and transaction-related details like wallet addresses, types of coins traded, and bank account information.

Unlike other foreign currencies, cryptocurrencies are considered taxable assets by Australian regulators. This means traders must pay capital gains tax on profits from selling crypto assets.

This move by the ATO comes at a time when cryptocurrency investors are seeing significant profits. Since the beginning of the year, Bitcoin has surged by over 44%, while Ether has risen by 32% year-to-date (YTD).

According to TradingView data, the market capitalization of top altcoins, excluding Bitcoin and Ether, has also increased by over 27% YTD.

The ATO’s notice highlighted the complex nature of the cryptocurrency space, suggesting that the ability to purchase crypto assets using false information might attract those seeking to evade tax obligations.

Australia is not the only country stepping up efforts to collect unpaid taxes on digital asset gains. In Canada, the Canada Revenue Agency (CRA) is currently conducting over 400 crypto-related audits and investigating hundreds of crypto investors to recover unpaid taxes.

The Turkish government is also expected to introduce crypto-related legislation later this year, providing a legal framework for crypto taxes in the country with a significant crypto economy.

In the United States, regulators are considering raising the long-term capital gains tax rate to 44.6% for investors earning over $1 million a year. Additionally, a 25% tax on unrealized gains is proposed for ultra-high-net-worth individuals.