The 21st century has seen, the use of cryptocurrency has increased significantly. Although some nations are already advocating cryptocurrency as an official currency, many continue to do the same. In the present, just few nations are still against the digital technology of the 21st century. The Australian continent is not stopping seeking ways to encourage the use of cryptocurrency within their nations. While cryptocurrency is yet to be legalized in the Australian continent There are no laws that restrict individuals from buying and selling cryptocurrency.
This book explains the latest laws that govern Cryptocurrency. It provides a guideline on how people are able to conduct transactions without a problem, and not violate the laws. This guide is an excellent resource for those who wish to understand how to buy and sell crypto in Australia.
What is cryptocurrency?
Digital assets, which are an alternative to payment but aren’t yet legal in every country. It is an uncentralized Blockchain technology that uses encrypted languages to make smart contracts.
Can you purchase Cryptocurrency in Australia
One of the most cryptocurrency-friendly countries is Australia. Although Cryptocurrency is not recognized as a legal currency in Australia however, it’s recognized as a legal property that can be traded or bought on authorized exchanges across the continent. Private coins are not permitted by the Australian government. They do not have owners and are not subject to rugpull. It is therefore possible to purchase crypto in Australia.
These are the steps you must follow to buy Crypto on an exchange in Australia.
There are five primary steps to buy Cryptocurrency through an Australia exchange. Here are our opinions about these:
Select your preferred cryptocurrency exchange: Here you can select from the list of crypto exchanges that are licensed within the country.
Create an account on the exchange: Once you have chosen an exchange, the next step is to sign up to open an account. You’ll need to supply details such as your email address, name, and address along with details regarding your country of residence and telephone number.
Upload your identity proofs
You can fund your account after the approval of your account then the next step is to pay it. The next section will outline the various ways to fund accounts through the majority of exchanges.
Place your order, move to the spot and make your purchase
Options for purchasing cryptocurrencies in Australia
We have already mentioned that the most effective method to purchase cryptocurrency in Australia is through the crypto-exchanges that are registered which exist in Australia. There are a variety of options available for investors to purchase cryptocurrency through an exchange in Australia. The options are listed below.
- Credit cards
- Debit cards
- Bitcoin ATM
Transfer money to the local bank
Take note of these aspects when selecting an exchange to purchase and sell cryptocurrency in Australia
There are many instances of crypto traders choosing one exchange over one. It is because of the appealing attributes of these exchanges. These are the features that makes the exchange stand out from other exchanges within the region. When selecting an exchange for cryptocurrency in Australia These features must be taken into consideration. The features discussed in the following paragraphs.
Regulation The cryptocurrency exchanges that operate in Australia must be registered with AUSTRAC The Australian regulator of the financial sector. It is unlawful for any cryptocurrency exchange to operate in Australia without being registered with the AUSTRAC body.
The volume of transactions is a key aspect that attracts more traders to exchanges. A high rate of transactions on an exchange can increase liquidity, which decreases the possibility of slippage.
Accessibility All cryptocurrency exchanges must provide their users with a simple platform to use and offer an extensive user guide for those who are new to the platform.
Different options for withdrawals as well as deposits. With a variety of options for withdrawals and deposits the withdrawal and deposit process is made easier. Every crypto exchange should provide various deposits and withdrawal options in order to satisfy the requirements of Australian traders. It is also essential to provide options to deposit or withdraw money in Australian dollar (AUD).
Support for customers Customer service teams which is effective gives traders the confidence that the exchange is concerned about the security of their funds. A crypto exchange should provide channels and outlets that permit traders to share their concerns to the management and have them promptly addressed.
An array of cryptocurrency A wide variety of cryptocurrencies: This is a key reason why more traders are drawn to an exchange. The preferences of crypto traders vary in the course of time. To meet the needs of traders the best cryptocurrency exchange must be flexible when it comes to listing new crypto currencies.
Contents on education: Trading in any cryptocurrency that is listed on an exchange could be made simpler by offering extensive educative content. This assists traders in deciding which cryptocurrency they would like to purchase and sell. To assist traders in making choices, every cryptocurrency exchange should provide a wealth of educational content.
Commissions, trading and commissions are high High commissions and trading fees: It is strongly discouraged to trade with crypto exchanges that have large commissions. A reputable crypto exchange will have lower charges for every transaction.
Are Crypto trading legal in Australia?
Trading in cryptocurrency is legal in Australia. All digital assets include Bitcoin altcoins and any crypto exchanges are legal in Australia.
All cryptocurrency exchanges operating in Australia are required to register with the Australian Transaction Reports and Analysis Centre. The AUSTRAC is the body that supervises all financial transactions in Australia and assists in preventing fraud and criminal activity. Any cryptocurrency exchange within Australia that is not registered with AUSTRAC is punished with serious penalties and criminal charges.
The government is not going to tolerate any cryptocurrency, except for the private coin offering, which is a cryptocurrency that is anonymous which is subject to a rugpull, and is unable to identify its owner. In August of 2020, the Australian regulator required that all Crypto exchanges operating in the country be removed from the list of privacy coins, and that any exchange that fails to adhere to the rules will be subject to government sanction.
Which are the most well-known cryptocurrencies in Australia?
Australian traders are typically the long-term investors in crypto. This is the reason many of them gravitate to large-scale Cryptocurrencies which offer excellent stability and let them either shorten or extend the market. The following 10 Cryptocurrencies are among the most traded in the present.
- Binance Coin (BNB).
- Ripple (XRP).
- Cardano (ADA)
Are Crypto trading and other cryptocurrency transactions tax-deductible in Australia
All earnings generated by Cryptocurrency trading in Australia are capital gains, and are subject to taxation.
The Australian Taxation Office (ATO) has imposed harsh penalties for those who violate the lawful requirements. A penalty of 75% in addition costs will be imposed as tax for those who fails to report capital gains earned from trading in cryptos to the relevant authorities to ensure proper deduction of tax.
Cryptocurrencies are legal in Australia, and all transactions that involve cryptocurrency are subject to the Anti Money Laundering and Counter-Terrorism Act.
Can Cryptocurrency be considered a secure investment?
Risk is usually linked with cryptocurrency investments. Since it is impossible to regulate the market’s volatility, investing in cryptocurrency is usually linked to high risk. The cryptocurrency exchanges that exist in Australia are licensed by the government and are required to ensure the highest security for the investor’s money. It is the sole guarantee that citizens can have when trading cryptocurrency in their nation.