What you need to know about cryptocurrency and tax

The rapid rise of cryptocurrency means many Australians now either invest in bitcoin and other cryptocurrencies or use them as a convenient way to pay for goods and services. But what happens on the tax front when your cryptocurrency portfolio suddenly pays big digital dividends?

CoinJar co-founder and CEO Asher Tan explains the key things you need to know.

Cryptocurrency use has grown exponentially in the last two years and Australians have embraced cryptocurrencies as a way to spend, send and trade money from anywhere in the world. Today Australia is the world’s 11th biggest market for bitcoin volume.

It comes as no surprise, therefore, that governments around the world are becoming increasingly focused on the tax consequences of the digital currency trend.

This year, the Australian Taxation Office (ATO) created a specialist taskforce to look at new ways to tax the asset class, with data-matching audits on the horizon to trace transactions to individual taxpayers.

So, with end of financial year approaching, it’s important to understand the tax implications for any digital currency transactions you have made in 2018.

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Source: What you need to know about cryptocurrency and tax | Nest Egg