Cryptocurrency exchange Crypto.com is making it easier for crypto investors in Australia to meet their tax obligations. Following the soft launch of its ‘Crypto.com Tax’ service in Canada and America, the Hong Kong-headquartered platform is rolling it out for Australia, with other markets to follow suit shortly.
Now, cryptocurrency investors in Australia can import their transaction records from more than 20 supported wallets and exchanges via CSV files or using API synchronization.
As crypto adoption continues to expand, Australia and other jurisdictions worldwide have mandated tax reporting on virtual currencies. The move highlights how regulators are not only concerned with combating cryptocurrency crimes, but also chasing those who use the digital asset class to hide their wealth or avoid paying taxes.
This is nothing new, but it has become a bit complicated in recent months as a booming market made some crypto dealers millionaires virtually overnight.
With its country-specific calculation formulas, Crypto.com Tax simplifies the entire process of reporting complex crypto taxes. This service, which is completely free, enables users to generate well-organized crypto tax reports, which can then be downloaded for tax filing.
Crypto.com says it has worked with professional tax advisers to ensure that the calculation logic complies with available guidance and laws for filing crypto taxes in each supported jurisdiction.
“We’re excited to expand our free-to-use crypto tax reporting service to Australia. We have long been committed to offering the most compliant and easy to use crypto platform in the world. As part of that commitment, we are proud to offer all Australian crypto investors an easy solution to filing their taxes. More markets will be added soon,” said Kris Marszalek, Co-founder and CEO of Crypto.com.
Crypto.com launched its own crypto tax calculator back in March 2021. Canada was its first supported jurisdiction, followed by the United States and now Australia, with plans to expand to other markets.
Although the popular exchange and payment platform didn’t reveal which jurisdiction is next, they will likely focus on where the majority of their customers are located.
Founded in 2016, Crypto.com stands out as a one-stop-shop for all crypto transaction needs. Now, in order to seemingly preempt tax reporting requirements in many countries, they’re providing their users with a way of automating their tax filing.
Australia tightens grips on crypto investment
Warning them of penalties if they fail to disclose income from their crypto holdings, the Australian Taxation Office requires the nation’s investors to report their operations in order to verify tax compliance.
Thousands of taxpayers across the country have already received instructions by mail or emails on how to accurately report their cryptocurrency-related income and amend their taxable returns, if necessary.
At the very core, the Tax Office still deems crypto assets to be property rather than a form of money for income tax purposes, the same as its regulatory guidance came out years ago. That means the ATO will continue to tax crypto profits and losses, like those for stocks. As a result, depending on their activities and transaction type, digital asset dealers may owe corporation tax, income tax, or capital gains tax.
The authority has gone a step further, indicating that it closely tracks where crypto traders interact with the real world through data from local banks. The Australian Taxation Office also extended a partnership with the nation’s cryptocurrency exchanges and brokers to hand over data on their client transactions, regardless of their value, until 2022-23.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
