Alot can be said about Australian culture and how we are as a nation, we're a laissez faire kinda country when it comes to markets. We do try to work on things to ensure the little guy doesn't get hurt but we don't go limiting things and allow people to live their lives and do the things they want to do as long as it doesn't hurt others.
Unfortunately I've had my nose in SEC approvals and bouts currently had in America and other parts of the globe that I have over looked my own country and crypto trading platform that is LEGAL and has been Registered to trade since 2018, Coinspot.
We has ASIC which is pretty much the US version of SEC but it doesn't a pretty good job of ensuring markets continue and they only require people to establish trading and following trading rules. Further more we have AUSTRAC which investigates money laundering and money used on terrorism.
A company just needs to follow the regulations to ensure money isn't being spent on terrorism and a few indemnity issues but users are required to not hold coinspot liable for losses if they get hacked but other than that in Australia you're good to go and trade in Crypto. No one cares.
In fact I've made myself look dumb over the past few weeks as I tried to advance crypto trading in Australia. People in my field kept asking "What laws need to be changed" my fault I should have been across it better than reading US news...
No one cares in Australia so long as you pay your Capital Gains Tax which is really only applicable once cashing out in fiat and the cash hitting your bank account. There are a few other rules around transferring but then there are rules around use. I.e. Hive/Leo can be seen as a job so you need to get an ABN as you're blogging and is no different to YouTube/mainstream Blog.
There are hobby clauses if you're investing small amounts just as a hobby, it's more mainly to catch ya once you get lucky and win 1m 🤣
Alot of people have asked me "Are you rich yet?" Make sure you pay your tax if you do. "Your shout at the pub when you get rich".
## The American Difference
I think America is a bit different in this aspect, if you hold a coin and it moons from 1c to $1 you need to pay tax on it forcing you to sell, whereas in Australia they don't have this requirement. If you purchase a coin and it moons you celebrate!
You only pay your tax if you use the profits to buy into another coin or you withdraw into fiat. But you're free to HODL all you like.
Further clauses have tax exemptions i.e If the coin you use is part of an in game currency and you need it to play the game or use it in the game then it is classified as tender for the game and you pay 0 tax.
Over the past week reading more battles between the US SEC and investors and how other countries are handling cryptocurrancy.
I have further raised this topic about other countries with people in my circle which often is returned with a shrug and "isn't all trading risky". Aussies seem unified in responses around fiat being a greater concern for funding terrorism and crime than cryptocurrancy and can't see the link.
From what I've been told terrorism and illegal crime is worth Trillions of dollars a year and the cryptocurrancy is too small to be funding crime. Sure some small drug deals might be going on but there are greater concerns with fiat than crypto. Also, to fund terrorism with cryptocurrancy would help investigators locate offenders as you can follow transfers on block chains you can't on banks and need court orders, don't need em for crypto, just go on the block chain and follow the trail.
Australia truly is the lucky country.
I am held to strict cultural laws though, that will see me need to shout alot of people beer if I make it as a millionair.
But if I did become a millionair what kind would I be if I didn't head to the local pub and shout everyone a beer?
I have a question, if you are an international investor I don't know how international law works but as FB and companies can get out of paying tax by setting up operations in other countries. Does the same apply to investors who use international based firms?
If you opened up an Aussie coinspot account alongside an Aussie bank account would that cover you? We do have a 50% CGT but it can be offset by losses. I don't know how the tax side works as I'm not an accountant but perhaps is worth further investigating?