Digital currencies will be treated as real money in Australia after July 1, 2017
Australia has announced it will be treating digital currencies the same as normal currency, ending the double taxation through GST and opening up regulatory restrictions on innovation. This is exciting news for the entire cryptocurrency industry!
An excerpt from the announcement is below:
Removing the double taxation of digital currency
The Government will make it easier for new innovative digital currency businesses to operate in Australia. From 1 July 2017, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for GST purposes. Currently, consumers who use digital currencies can effectively bear GST twice: once on the purchase of the digital currency and once again on its use in exchange for other goods and services subject to the GST.
Extending crowd-sourced equity funding
The Government is making it easier for start-ups and innovative small businesses to raise capital.The Government released draft legislation to extend crowd-sourced equity funding (CSEF) to proprietary companies with the 2017‑18 Budget. This will open up CSEF for a wider range of businesses and provide additional sources of capital.Proprietary companies using CSEF will be able to have an unlimited number of CSEF shareholders.Shareholders will be protected by the higher governance and reporting obligations that CSEF proprietary companies must meet. These obligations include: a minimum of two directors; financial reporting in accordance with accounting standards; audit requirements; restrictions on related party transactions; and minimum shareholder rights to participate in exit events.
What are your thoughts on how this will affect other governments' regulation of cryptocurrency?
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thanks for these news, Coin, following^
Very interesting hopefully sets a precedence for other countries to start evolving with cryptocurrency.
Appreciate the quick and dirty articles, the type of stuff I'm looking for :)
Thanks, I try to stay current and might as well share the good bits with the community :)
Government getting out of the free market's way is always a great thing!
Taxation is theft!
As more countries endorse the use of digital currencies (rather than banning them) I believe confidence in digital/crypto currencies will grow, and as confidence in currency grows - so does its value! :-) Hold on to your Steem people!
Another great news for cryptocurrencies! :)
Thanks for sharing this.