Australian cryptocurrency traders will receive “letters of happiness” from the tax

The Australian Taxation Office (ATO) plans to send notices to 350,000 citizens who tradedcryptocurrencies over the past few years, asking for income statements.

Over the next two months hundreds of thousandsAustralians will receive notifications via paper or email. In Australia, cryptocurrencies are seen as a form of asset, therefore they are taxed on profits. That is, traders must provide a declaration of income received from purchases and sales of digital assets, and pay taxes.

ATO spokesperson stressed that traderskeep records of transactions performed, including data from cryptocurrency exchanges, receipts for the purchase or transfer of cryptocurrencies, records from digital wallets. In addition, taxpayers must provide data on the goals and amounts of transactions at the time of their implementation.

“In April last year, we launched a programreceiving data about taxpayers from cryptocurrency exchanges. Using this data, we realized that some taxpayers don't even know they have to file a return. This is due to the complex nature of cryptocurrency assets. Therefore, the distribution of notices should create awareness among taxpayers. All the necessary information can be obtained on our website or from your tax agent,” said an ATO representative.

According to a tax service representativeAustralia, traders who traded cryptocurrencies in 2017 and 2018, also need to check their declarations and, in case of incorrectly specified data, correct them.

Recently, the Australian Prudential Regulation Authority (APRA) announced that it plans to oversee cryptocurrency wallets.

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