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We have arrived down under: Australia!
A regulatory framework set in stone. And tax-regulations.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) regulates digital currency exchanges in Australia. Exchanges must register with AUSTRAC and comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. Australia has shown significant interest in blockchain technology, the underlying technology behind Bitcoin. Its strong regulatory response is testimony to the country's flexible stance regarding disruptive technology.
The Australian Taxation Office (ATO) treats Bitcoin as property, not as a currency. This means that transactions involving Bitcoin are subject to capital gains tax and individuals and businesses are required to report their cryptocurrency transactions for tax purposes.
A beautiful Sydney skyline.
Australia wants to become a hub for innovation.
Through its appropriate legislation and licensing, Australia's federal government envisions the country becoming a leading global crypto hub. Positive industry consultations are underway for a new regulatory framework aiming to balance innovation and investor protection. Despite this optimistic outlook, a significant hurdle remains the existing shortage of tech talent in the country.
A part of the solution is to attract remote workers, who don't need to displace themselves but can work from home. Australia will therefore need some big changes in its work ethic, with global innovators expecting to be able to work from home.
Bitcoin's status in Australia is stable.
Bitcoin is legal in Australia. The Australian government recognizes it as a form of currency, and individuals and businesses can use it for transactions. Australia has a growing number of Bitcoin ATMs where users can buy and sell Bitcoin using cash. Bitcoin ATMs in Australia are mostly found in the country's two biggest cities, Sydney and Melbourne. Perth had the third-highest number of ATMs with four in October 2023. Like elsewhere, Bitcoin is popular among the citizens of the country.
The Commonwealth Bank (CBA) was the first financial institution to announce that it would offer its customers the ability to buy, sell, and hold crypto assets, directly through the CommBank app.
There are even small-scale educational efforts in Australia to increase awareness and understanding of cryptocurrencies and blockchain technology. Some universities offer courses related to blockchain and digital currencies. But so far, the country cannot attract the necessary brain-power to become a true innovation hub.
Australia already pioneered its Bitcoin and Ethereum ETFs in 2021.
Australia beat the United States in its own game when Australia's securities regulator, the Australian Securities and Investments Commission (ASIC), approved the long-anticipated spot exchange-traded funds (ETFs) involving the world's top two cryptocurrencies, Bitcoin and Ethereum.
Australia's initiative to offer regulatory clarity for physically backed crypto ETFs established a framework for other countries to emulate. Even the United States needed a few more years to receive approval from its regulators.
Crypto is safe, but mind the crocs!
Exchanges and wallets in Australia.
The most popular Australian crypto exchange that accepts credit cards and boasts one of the best security track records in the business is CoinSpot. It is followed by eToro and ByBit.
CoinSpot, a Melbourne-based exchange founded in 2013, is regarded by most Aussies as the most secure crypto app in the country. CoinSpot stands out among its competitors for its trusted security measures that protect users and their money and is a certified member of Blockchain Australia and boasts ISO 27001 certification.
Top wallets for Australia include Nano LEDGER S Plus and X, TREZOR X, and Exodus, followed by Trust Wallet and MetaMask.
Australia's reserve assets.
As Bitcoin is becoming a reserve asset, next to gold and US Treasuries, how deep are Australia's pockets? Australia is rich in certain commodities, giving it an advantage, because there's an abundant amount of gold in its soil. Besides 'down under', Australia holds approximately $56,7 Billion in gold and US Treasuries in its Central Bank vaults.
The nation is relatively well positioned in case of further de-dollarization due to its big exposure to gold, which stands to profit from that trend. Australia, notably Western Australia, is one of the world's top producers of gold. Next to its access to gold, the nation should diversify and add to its Bitcoin holdings, to be positioned optimally when a new world order is established.
