Report: Australian Tax Office Requests Data from 1.2 Million Users of Crypto Exchanges

Australia’s tax office is reportedly planning to obtain personal data and transaction details from approximately 1.2 million cryptocurrency exchange users in order to crack down on tax obligations related to cryptocurrencies. The Australian Taxation Office (ATO) stated that this data will assist in identifying traders who may have failed to pay taxes on their crypto trades. The ATO will request personal information such as users’ date of birth, social media accounts, and phone numbers, as well as transaction-related details like wallet addresses, types of coins traded, and bank account information. Unlike other foreign currencies, cryptocurrencies are considered taxable assets in Australia, thus requiring traders to pay a capital gains tax on profits from crypto asset sales. This tax collection crackdown coincides with a profitable time for crypto investors, with Bitcoin (BTC) rising by over 44% since the beginning of the year and Ether (ETH) increasing by 32% year-to-date. The market capitalization of the top altcoins, excluding BTC and ETH, has also risen by more than 27% this year. The complexity of the cryptocurrency space often leads to a lack of awareness regarding tax obligations, according to the ATO. Australia is not the only jurisdiction seeking to collect unpaid taxes on digital asset gains, as Canada and Turkey are also taking similar measures. In the United States, regulators are considering raising the long-term capital gains tax rate to 44.6% for investors earning over $1 million annually. Furthermore, the Biden administration’s Federal Budget proposal includes a 25% tax on unrealized gains for ultra-high-net-worth individuals.