Tax treatment of digital currencies, Chapter 4

Thank you, El Salvador!

In 2014, the Australian Bitcoin community advocated for BTC to be considered a currency. Under the Income Tax Act, foreign currency is defined as ‘currency other than Australian currency’.

The Tax Institute noted: “If a foreign country decided to adopt Bitcoin as legal tender … Bitcoin would then automatically be required to be recognized as a foreign currency.”

This could serve as a clear framework for the treatment of BTC under existing laws, removing most of the regulatory uncertainty that comes with using bitcoin in everyday transactions.

Source: https://www.aph.gov.au/parliamentary_business/committees/senate/economics/digital_currency/Report/c04
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First published 10th June 2021.
Source: https://www.facebook.com/robertvong/posts/10157713141206809