Australia’s Tax Office Demands Data on 1.2 Million Crypto Accounts: Report

Australia’s Taxation Office (ATO) has issued a notice to crypto exchanges. According to Reuters, the ATO has requested the personal data and transaction details of up to 1.2 million accounts. This move is part of its efforts to crack down on users who may be evading their tax obligations. 

Key points:

• ATO requests personal information such as date of birth, mobile numbers, social media accounts, and transaction details.
• Data will help identify traders who failed to report the exchange of crypto assets or their use for purchases.
• Australia treats digital currencies as assets for tax purposes, subject to capital gains tax.
• In the last three years, over 800,000 Australian taxpayers have transacted in digital assets, with a 63% increase in 2021.
• The ATO cites the crypto industry’s complex nature and the ability to purchase assets using false information as contributing factors to tax evasion.

The ATO aims to identify traders who have not properly reported their cryptocurrency transactions. This includes exchanging digital assets for currency or using them to pay for goods and services, as per the notice they issued last month.

Australia’s tax office requests a fleet of information from crypto exchanges

The tax office acknowledges that the complex nature of the crypto industry can lead to a genuine lack of awareness of tax obligations among users. However, it also notes that the ability to purchase crypto assets using false information may make them attractive to those seeking to avoid their tax responsibilities.

The ATO’s data collection protocol will require designated cryptocurrency exchanges to provide a range of personal information. This includes names, addresses, birthdays, phone numbers, and social media accounts, along with transaction details such as bank accounts, wallet addresses, and coin types. 

Australian tax law treats digital currencies as assets rather than foreign currency. As a result, investors are required to pay capital gains tax on profits derived from selling crypto assets and trading digital assets. 

The demand for data on cryptocurrency accounts comes as no surprise, given the growing popularity of digital assets in Australia. Australia’s crackdown on the crypto industry has intensified in the wake of the high-profile collapse of cryptocurrency exchange FTX.