Buying crypto in Australia? Here are the facts
The 21st century has seen, the use of cryptocurrency has increased dramatically. Many countries have gone to the point of promoting cryptocurrency as a legal tender in their own country, while others are in the process of implementing. Only a few countries today remain averse to the present century’s digital technology. The Australian continent isn’t stopping seeking ways to encourage the use of cryptocurrency in their country. While cryptocurrency is yet to be legal tender in the Australian continent however, there is no law prohibiting citizens from buying and selling Cryptocurrency.
This publication explains the current laws governing Cryptocurrency. It also explains how citizens can use crypto transactions freely without violating the law. Beginners seeking to learn how to buy and sell crypto in Australia will find this work an invaluable guide to satisfy their needs.
What is Cryptocurrency?
Digital assets are digital ones that serve as an alternative means of payment but yet to be legalized in a number of countries. It is an uncentralized Blockchain technology that uses encrypted languages to run smart contracts.
Can one buy Cryptocurrency in Australia?
The Australian continent is one of the most remarkable crypto-friendly nations. Even though Cryptocurrency isn’t yet recognized as a legal tender in the country, it is accepted as a legitimate property that can be purchased and sold through licensed exchanges across the continent. The only cryptocurrency banned by the Australian government is the issue of private coins, which has no recognized owners and is therefore subject to rugpull. It is therefore possible to purchase crypto in Australia.
Here are the steps to buy Crypto using an Australian exchange
There are five primary procedures in order to purchase Cryptocurrency on an Australia exchange. We’ve discussed them in the following paragraphs:
Select your preferred exchange: You must select his favorite exchange from the list of regulated crypto exchanges within the country.
Register an account with the exchange: The second step following the choice of an exchange is to sign to create an account at the exchange. Here one is expected to provide information such as name, address, email age, nationality telephone number, etc.
Upload your identity documents
You can fund your account after approval of one’s account it is time to pay it. We have listed the various ways of funding an account by most exchanges in the next section.
Go to the location, make your purchase
The methods used to purchase cryptocurrency in Australia
We’ve already mentioned that the best way to purchase cryptocurrency in Australia is via licensed crypto exchanges operating within the country. There are a variety of alternatives available to traders for buying cryptocurrency from an exchange within Australia. These are as follows:
- Credit cards
- Debit cards
- Bitcoin ATM
Transfer money to the local bank
Consider these factors when choosing an exchange to purchase and sell crypto in Australia
It is common for crypto traders to find themselves preferring one crypto exchange to one. It is because of the appealing features of such exchanges. There are some important features that elevate an exchange over any other exchanges that operate within the same area. When choosing an exchange for cryptocurrency in Australia, these features should be taken into account. We’ve discussed them in the following paragraphs:
Regulation: All cryptocurrency exchanges that operate in Australia must register with AUSTRAC, the Australian financial regulatory body. It is illegal for any crypto exchange to operate in Australia without registration with AUSTRAC.
The volume of transactions is an important aspect that attracts more traders to an exchange. A high volume transaction rate for an exchange will increase the liquidity, which decreases the possibility of slippage.
Accessibility: All cryptocurrency exchanges must make their platforms easy to use, and come with an appropriate user guide for novice users.
Multiple options for deposits and withdrawals: Offering a variety of options for withdrawals and deposits make the deposit and withdrawal process simple. Every crypto exchange should provide various deposits and withdrawal options in order to satisfy the requirements of Australian traders. It is equally important to offer alternatives for depositing or withdrawing money in Australian dollar (AUD).
Customer support services: Being able to provide an efficient support system for customers provides traders with the confidence that the exchange cares very much about the safety of their money. A crypto exchange should provide channels and outlets that allow traders to raise concerns with the management and be promptly addressed.
The number of cryptocurrencies offered The capability to incorporate a large number of cryptocurrencies in an exchange is a very important aspect that draws many more investors to an exchange. The preferences of crypto traders vary in the course of time. Therefore good crypto exchange must be able to keep up with the latest cryptocurrency on their platform in order to meet requirements of traders.
Education contents: Trading on any cryptocurrency on an exchange can be made simpler by offering extensive educative content. This assists traders in deciding which coins they prefer to buy or sell. To help traders make decisions, any crypto exchange must offer rich educational content.
Fees for trading and commissions that are excessive: It is highly discouraged to trade with crypto exchanges that have large commissions. A reputable crypto exchange will have lower charges for all transactions.
Are Crypto trading legal in Australia?
There isn’t a law that bans the trading of cryptocurrency in Australia. Digital assets of all kinds, including Bitcoin altcoins as well as all crypto exchanges are legally valid in Australia.
Every crypto exchange that operate in Australia have to be registered with the Australian Transaction Reports and Analysis Centre. The AUSTRAC is the body that regulates all financial transactions within Australia and assists in preventing fraud and criminal activity. Any cryptocurrency exchange within Australia that is not registered with AUSTRAC will be subject to harsh penalties and even criminal charges.
The government is not going to tolerate any cryptocurrency except the private coin offering, which is a non-identifiable cryptocurrency that is subject to a rugpull, and is unable to trace its owners. In August 2020 the Australian regulatory body demanded that all Crypto exchanges operating in the country remove privacy coins. Any exchange that fails to adhere to it face government sanctions.
What are the most traded cryptocurrency types in Australia?
Australian traders are predominantly long-term crypto-investors, which is why the majority of them are drawn to Cryptocurrencies that are high volume, which gives an excellent stability whether trading or just shorting the market. Hence the following ten Cryptocurrencies can be identified as the most traded today:
- Binance Coin (BNB)
- Ripple (XRP).
- Cardano (ADA)
- Bitcoin Cash
Are Crypto trading and other cryptocurrency transactions tax-deductible in Australia
All earnings generated by Cryptocurrency trading in Australia are capital gains that are subject to taxation
The Australian Taxation Office (ATO) has established a severe penalty for violating these laws and penalties of 75% additional charges will be assessed as tax for anyone who does not report their Capital gains from trading crypto to the appropriate authority to be properly deducted of taxes.
In addition, cryptocurrency is considered legal properties in Australia which makes all crypto transactions as subject to the Anti Money Laundering and Counter-Terrorism Act which was passed in 2006.
Can Cryptocurrency be a reliable investment?
The risk of high is frequently linked with cryptocurrency investments. Because there is no way to manage market volatility, investing in cryptocurrency is usually associated with risky investment. The only guarantee that citizens can have when they engage on trading with cryptocurrencies within the country is that all exchanges functioning in Australia are registered with the government and must offer the highest level of security to the money of investors.