On 22 June 2022 the Assistant Treasurer Jim Chalmers MP announced the Federal Government would retroactively amend current legislation to exclude crypto assets from being recognised as a foreign currency, in light of El Salvador and the Central African Republic recognising Bitcoin as legal Tender.
The Government confirmed capital gains tax (CGT) will continue to apply to crypto assets held as investments and will backdate legislation to 1 July 2021 to avoid any ambiguity for the taxpayer.
In September of 2021 the government of El Salvador became the first government to recognise Bitcoin as legal tender and in April of 2022, the Central African Republic followed suit.
Without further regulatory and legislative guidance to govern cryptocurrency in Australia and globally, cryptocurrency remains a rapidly evolving asset. It’s important to stay up to date with the latest changes related to cryptocurrency by seeking advice from specialists. Chamberlains Cryptocurrency team provides taxation and regulatory advice to investors, projects, traders, miners and crypto adjacent businesses.
If you have any questions or concerns please contact Sam Keys-Asgill of our Cryptocurrency Law Team on 02 9264 9111