Category: Australia

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Australia Crypto News Cryptocurrency Tax

ATO Warns Crypto Holders To Report Crypto Gains

On Friday, the Australian Tax Office (ATO) stated that they are expecting all cryptocurrency-related income to be reported for taxation purposes.

600,000 Aussies Expected To Report In

According to Tim Loh – ATO Assistant Commissioner – over 600,000 Aussies have recently invested in cryptocurrencies, and all of them are expected to report in. 300,000 taxpayers will reportedly be prompted to include crypto gains and losses on the tax sheet as they fill out their forms this year. A further 100,000 will be requested to review their previously lodged tax returns.

Tim Loh also stated that he found it strange that many people thought cryptocurrency was anonymous and couldn’t be tracked. Additionally, reporting applies to Non-Fungible Token sales, purchases and trades as well. However, keep in mind that if you’ve been HODLing for 12 months or more, you may be entitled to a Capital Gains Tax (CGT) discount, assuming you’re in the green.

The best tip to nail your cryptocurrency gains and losses is to keep accurate records including dates of transactions, the value in Australian dollars at the time of the transactions, what the transactions were for, and who the other party was, even if it’s just their wallet address.

Tim Loh, ATO Assistant Commissioner

The tracking is being done via the Financial Data Matching Protocol, which has been active for a while in conformity with the Office of the Australian Information Commissioner’s Guidelines on Data Matching in the Australian Government Administration.

Cryptocurrency tax can be complex so the ATO has also made available a factsheet providing tips and information about how CGT applies to cryptos.

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Australia Bitcoin Cryptocurrency Tax

Australian Crypto Collateralized Loans Tax Questions Answered

What is a Crypto Collateralized loan?

A crypto collaterized loan is a type of borrowing where you stake cryptocurrency as collateral to borrow against funds receiving (typically another cryptocurrency).

Example of a crypto collaterized loan

For example to apply for a loan of $1,000 AUD worth of USDT stablecoin you could use $2,000 AUD worth of Bitcoin (BTC) as collateral which would set the LTV (Loan to Value Ratio) to 50%.

  • Borrowed Coin = The crypto that you borrowed from the loan.
  • Collateral Coin = The crypto that you used to fund for the loan.

This type of loan is also known as a CLO – collateralized loan obligation, where the Collateral Coin price vs the Borrowed Coin price can fluctuate based on the market directly affecting the LTV of the loan and produce a margin call or even liquidation.

Below are some common tax questions to help you with your fiat-liquidity crypto collaterized loan decisions.

Common Crypto Loan Tax Questions Answered

ASIC Rulings on Loans?

All lenders must be licensed with ASIC and have an Australian Credit Licence Number to be able to offer loans in Australia. Majority of crypto backed loans currently available are via non-Australian companies, and therefore don’t fall under the ASIC lending rules for offering crypto loans. Be aware that you are not protected under ASIC when taking a loan from an overseas crypto loan provider if problems were to occur.

Can you claim back the interest on the loan as a tax deduction in Australia?

If you have taken the loan for personal reasons, then the loan and the interest portion of the loan are not tax deductible. If the loan is being used for either business purposes or investment purposes, then the interest paid portion of the loan can be claimed back as a tax deduction against the earnings received from the business activity or investment income earned. It is best to seek professional advice to determine tax deductibility as everyone’s circumstances are different.

Do you pay capital gains tax on the Bitcoin once you’ve closed off the loan?

Because you have collateralized your loan with crypto, you still hold ownership of the original crypto that was collateralized. You would pay capital gains tax as normal upon disposal of that crypto. For the crypto that is received (the loan), if the value goes up in the time you received the loan to when you dispose of that crypto, then you will pay capital gains tax. If however, the value goes down, then it would be classed as a capital loss on disposal.

Are there any tax differences between lenders? Or its all the same?

There is no tax differences between lenders, except for the interest rate. If you have a higher interest rate, then you will receive a higher tax deduction if the loan is not for personal reasons. The main difference to consider between lenders would be creditably of the loan provider so check if they have an Australian Credit Licence Number with ASIC.

Do you pay tax on the loan when you borrow it? Ie If you borrowed $3,000 worth of LTC and then transferred it to AUD and withdrew it to your bank account.

You are not required to pay tax on the value of the loan borrowed but if the value of the crypto increases prior to disposing of it, then you would be required to pay tax on the difference. For example, if you borrowed $3,000 worth of LTC held on to it for a few days, then sold the LTC to AUD but because LTC value had increased over those few days, the value of AUD ($3,200) received into your bank account would be higher than $3,000. You would be required to pay tax on the difference being $200 capital gain. If you withdrew LTC to AUD bank account at the same value that you borrowed it, then although it is a disposal of LTC you would have no tax to pay.

If you repay (close) your loan and your Collateral Coin increased in value do you pay tax on that? It’s an unrealised gain so no right? However, if the value decreased are you able to claim that back (offset) somehow?

It only becomes a taxing event on disposal of the collateral coin. So if the value increases and you haven’t sold the collateral coin, then the gain is unrealised and not taxable yet. Likewise, if the value decreases and you haven’t sold the collateral coin, then the loss is unrealised, and not a taxable event until sold and therefore you are unable to claim the loss against other income.

If the loan gets liquidated, whats the Tax implications on that?

If the loan gets liquidated, then this means the crypto gets disposed to cover the loan. It becomes the taxing point for the crypto disposed. If the liquidation price is higher than the original purchase price of the crypto it will be a capital gain, otherwise it will be reported as a capital loss. Note that capital losses cannot just be offset against other ordinary income, they can only be offset against capital gains.

If you adjust the LTV ratio or or get a margin call and put more Collateral Coin into the loan, does that affect the tax in any way?

As long as you are not disposing of any cryptocurrency, then it is not a tax event. For example, if you just put more Collateral Coin into the loan, you are reducing the risk of the loan being margin called or being liquidated.

Does a Crypto Backed Loan get taxed differently if I am a Crypto Trader instead of a Crypto Investor?

If you are classified as a crypto trader because of the volume of crypto transactions that you are involved with, then you may not be able to use the capital gains method, which means that any unrealised gain you may make by the end of the financial year (30 June) will be taxable.

Any specific ASIC considerations for collateralized loans?

N/A

How to Get a Bitcoin Backed Loan in Australia

See our guide on How To Get A Crypto Backed Loan With Binance Australia for instructions on how to apply for a Bitcoin backed loan within Australia.

The answers in this article we’re provided to us by an Australian Tax Expert. If you spot any mistakes, or have any additional questions you would like to ask, please let us know.

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References

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Australia Crypto News Regulation

Australia’s Fintech Senate To Provide Final Report in October 2021

The Senate Committee on Australia as a Technology and Financial Centre will provide the third and final report in October 2021, as Senators push for a more crypto-friendly Australia.

Senate Pushing for A Crypto-friendlier Australia

On Wednesday, the Senate released a Third issues Paper where it will guide submitters to examine a handful of topics related to technology and finance, and what could be possibly stopping the country to become a hub in those fields.

Chaired by Senator Andrew Bragg, the Senate is calling submitters to address important topics like how Blockchain and cryptocurrencies can promote investment in the country and bolster Australian economic growth.

Another essential topic would be what type of laws are restraining new investment in Australia. Senator Bragg has called out on how corporate laws are holding back investment in the country, which has led the Committee to lay down specific subjects for submitters like:

  1. The impact of corporate law restraining new investment in Australia
  2. The policy environment facing neo-banks
  3. Barriers to the adoption of new technologies in the financial sector

Australia is “Well Poised” To Become a Leader in Fintech

The Australian government is keen to establish the nation as a crypto-friendly economy. However, experts in the field believe the government is taking a slow pace compared to other countries which have already adopted blockchain and established crypto regulations to boost their economies.

During the Blockchain Australia Week, several important personalities in the local community shared their concerns about Australia having the potential to become a leader in financial technology, but instead falling behind global competitors.

A major concern for the local community is the lack of a regulatory body, which many CEOs of local crypto-companies have already said it’s hurting the industry, and driven away potential offshore investors.

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Australia Bitcoin Investing

Love Island Australia Star Vanessa Sierra Tells Fans To Ignore Celebrity Bitcoin Influencers

Known for her appearance on Love Island Australia, Vanessa Sierra recently revealed that she’d been into cryptocurrency for a while – and advised fans to stay away from vague advice from crypto influencers.

Watch the video

Be Wary Of Celebrity Bitcoin Influencers

Vanessa advised those who were new to the crypto space to stick to the major cryptocurrencies in order to not fall into one of the many traps associated with the crypto space, such as ignoring the market cap.

In a story video posted to her Instagram, Vanessa advised fans to stay wary of internet personalities telling fans to buy a tokens.

“I’m sorry but I’m disgusted in the lack of morality and really want to warn people about investing in crypto when influencers are clearly being paid to promote it. If someone is genuinely educated about cryptos, they would post and talk a lot more in detail about blockchain rather than posting a “tip” with absolutely zero background Information. I post because I’ve been into crypto since I was 12 years old and do hours of reading a day. And I still don’t consider myself that knowledgeable.”

Social Media Influencer Vanessa Sierra

Indeed, 2020 and 2021 has seen a fresh influx of crypto investors – some of which have been baited into decisions by the cohort of clickbait Youtubers with dramatic thumbnails advising fans to buy tokens. We even saw some Youtubers show proof that they have been paid to promote coins.

As always, conduct your own research before deciding whether to invest in cryptocurrencies – do not blindly follow the advice from your favourite social influencers.

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Australia Crypto Exchange Crypto News Swyftx

Swyftx Founder Alex Harper Interview – Australian Entrepreneur Story

Alex Harper, co-founder and CEO of the Australian crypto exchange Swyftx, shares his story in an interview by local podcast Sam Squared.

Alex was recently featured amongst the Brightest Aussies Under 30 and in the podcast explains his entrepreneurial journey so far, how Swyftx started and what the future holds for himself and the company.

Australian Entrepreneur Alex Harper’s Story

Alex co-founded Swyftx with his friend Angus Goldman back in 2019 using their profits from the previous years of a crypto bull market. Since then the company has remained fully self-funded, which is an achievement in itself.

Alex explained that the company name comes from the bird “swift” plus “x” as a reference to exchange and trading.

As of May 2021, Swyftx is transacting $2 Billion AUD per month in customer trading volume on their platform. This places them in the top handful of exchanges operating in Australia, in terms of volume.

Alex shared some of the lessons he has learnt so far in the industry, one of which is aligning life passions with work life. He always enjoys building this project and sees it as a challenge to deliver something in the crypto space offering value to people.

Swyftx’s Key to Success is its Focus on User Support

It’s no surprise that Swyftx has 5 star user support Trust Pilot as they have focused the business on providing excellent customer support.

The support team is growing rapidly at over 70 employees based in Milton, Brisbane, with more overseas support staff, adding an employee every 1-2 days. Such a growth rate is astonishing considering they only had 5 employees back in early 2020.

Alex also mentioned that the support team is working extremely hard and often long hours so they try to nurture a good company culture, hiring someone to manage that aspect.

Swyftx Listens to its Customers Introducing New Features

Swyftx Platform Tracking Feature

Alex mentions that Swyftx has the nickname “Australia’s most progressive cryptocurrency exchange” because they implement new features suggested by their customers, keeping them satisfied by improving the offered services. Some of these features include:

  • Showing total portfolio growth from day 1
  • Demo mode
  • Recurring buys
  • Bundles
  • Portfolio tracking
  • Adding more coins

What the Future holds for Swyftx

With almost 300,000 users, Swyftx has seen record growth in the first quarter of this year, becoming one of the leading crypto exchanges in the country.

They now are implementing plans to expand the exchange into more countries including New Zealand, United Kingdom, Canada, Ireland, India.

They also have plans to integrate all major asset classes into the platform so customers could access “everything in one place” to work on building their financial freedom.

Get Started with Swyftx

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Australia Coinjar Press Release

CoinJar Announces Partnership with the AFL’s Melbourne Demons

MEDIA RELEASE: Melbourne, 19 May 2021: CoinJar, Australia’s longest running cryptocurrency exchange, today announced its partnership with the Melbourne Football Club, making it the first crypto company to sponsor an AFL club for both its men’s and women’s teams.

CoinJar’s CMO Dominic Gluchowski and Melbourne Demon Mascots

The Melbourne-founded platform, which has over half a million customers in Australia, says it wanted a partner that could match crypto for excitement and momentum.

“CoinJar is thrilled to be joining forces with a champion club that shares our passion, professionalism and innovation mindset – as well as a proud and very vocal fanbase,” says Asher Tan, CEO of CoinJar.

Tan says the partnership is a long term play, which will be supercharged by short term tactical marketing activities. “At a time of increased credibility, proven strength and swelling of interest in cryptocurrency, we are focussed on building an iconic brand which will stand the test of time – much like the Melbourne Football Club.”

Melbourne Demos Coach Simon Goodwin with CoinJar’s CMO Dominic Gluchowski

CoinJar makes buying and selling cryptocurrency like Bitcoin and Ethereum simple, a key message that will be communicated to fans and spectators via content partnerships, player engagements, stadium branding and exclusive offers for Melbourne Football Club members. CoinJar is also the club’s List Management partner which will see the logo across all club recruiters and list management kit.

With cryptocurrency in the middle of a record-breaking run – up 300% since the beginning of the year –  this partnership firmly shines the spotlight on a growing industry and a team on the rise. “Both our teams are having breakout years, so the decision was an easy one,” says Tan.

Melbourne CEO Gary Pert agrees. “CoinJar is operating and excelling at the absolute cutting-edge of digital technology and we’re tremendously excited to welcome them to the Melbourne Football Club family.”

“As organisations we share a strong passion and commitment to innovation, and we look forward to seeing what we can achieve together.”

“Like the Demons, cryptocurrency has been written off for years,” says Tan. “But now it’s going mainstream and becoming impossible to ignore.”

Research suggests that almost 1-in-5 Australians already own crypto, and that number is growing by the day. “By the end of the year, we’re hoping that’s 1-in-2,” says Tan.

“CoinJar’s mission has always been to make it as easy as possible for everyday Australians to invest in the cryptocurrency future. By partnering with a legendary club like the Demons, we’re hoping to take the next step on our journey to becoming as widely known and proudly Australian as the AFL.”

About CoinJar

CoinJar is the simplest way to buy and sell cryptocurrency in Australia. Founded in 2013, our mission is to create best-in-class financial apps and products that make digital currencies such as Bitcoin and Ethereum accessible to everyone.

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Australia Binance Australia Crypto News Swyftx

Fastest Growing Crypto Companies in Australia

During the first quarter of 2021, various Australian companies have experienced significant growth, reaching important milestones in adoption, user base, and trading volume.

Australia has emerged as one of the fastest-growing countries when it comes to new financial technologies like cryptocurrencies. Here are some of the top crypto companies that currently achieving important milestones.

Binance Australia

Binance AUS has become the top exchange in the country, recording massive trading volumes and user traffic in the first quarter of 2021. Former CEO Jeff Yew shared great results on Twitter earlier on this year.

The number of SMSF and corporate accounts has grown 400% since last quarter, shortly after trading volumes surpassed $130 million AUD in a single day.

One of the reasons for its success is its support for various AUD deposit methods and educational content. Users can simply deposit AUD using  PayID/Osko to set up their account — and as for anyone eager to explore the crypto market, the exchange also offers Binance Masterclass, a series of free online educational videos.

Swyftx

The Australian-based startup has seen tremendous growth since it was launched in 2017 due to its innovative approach to the crypto community and excellent user support.

Swyftx has managed to keep high support standards even under pressure, with thousands of requests per day. This has given the platform high scores and positive reviews on TrustPilot.

Source: TrustPilot

Swyftx holds over 60,000 users on its platform. The exchange has introduced infrastructure optimisations to keep up with the increasing user base, which is expected to grow even higher this 2021.

Synthetix

Synthetix (SNX) is an Australian derivatives liquidity protocol that has been experiencing fast growth in the country. It is one of the few DeFi projects that has called the attention of institutional capital, raising $12 million USD from major VC firms, including Coinbase Ventures, Paradigm and IOSG.

As the name suggests, the protocol focuses on synthetic assets —derivate tokens on the blockchain that provide exposure to different real-world assets.

Fantom

Fanton (FTM), an Australian blockchain platform, has witnessed tremendous growth this 2021, even surpassing 3 million transactions, a significant milestone for the protocol.

Fantom takes a user-friendly approach to the crypto community with low fees, cross-chain consensus compatibility, and integrating MetaMask so developers can work with Ethereum dApps.

The protocol has seen tremendous growth as it focuses on solving the scalability issues of existing blockchains. It quickly grew to sit on a $1.3 billion AUD market cap with a token currently priced around $0.53 AUD.

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Australia Education

TAFE Trains for Future Blockchain Jobs

TAFE Queensland in partnership with Blockchain Collective are leading the world in blockchain education with Australia’s first registered Diploma of Applied Blockchain.

In the tech world, blockchain is one of the most talked-about emerging trends and  Blockchain Collective Co-Founder, Austin Lewinsmith said soon the technology will be a seamless part of everyday lives for almost everyone around the world. 

“Blockchain technology will underpin the development of the Web 3.0 revolution because it provides highly effective, efficient and secure ways of managing data,’’ said Mr Lewinsmith. 

“Essentially it is a data structure that manages records while ensuring security,  transparency and decentralization.” 

Mr Lewinsmith said a few years ago he and his business partners Nathan Burns and Rafael Bergola were working on several blockchain related projects when they discovered the world lacked recognised and accredited training in blockchain technology. 

“We looked around and there were a few places on the internet that provide bits and pieces of training, but these courses were not comprehensive or officially recognised,’’ he said. 

“We realised there was a need to create accredited educational courses for people  who want to learn, use and apply blockchain so we worked with education  professionals to develop a curriculum.” 

Blockchain Collective turned to the State’s largest and most experienced training provider, TAFE Queensland to deliver Australia’s very first registered Diploma of Applied Blockchain. 

Students can apply for loans to help pay tuition fees

With enrolments now open, it is the first time students can study the qualification with  access to VET Student Loans (VSL) to help pay their tuition fees.

TAFE Queensland General Manager on the Gold Coast, Karen Dickinson said the organisation is honoured to be partnered with Blockchain Collective to offer Australia’s first nationally recognised blockchain course with access to student loans.

“The demand for knowledge and education about blockchain technology is growing exponentially around the world and TAFE Queensland is now at the global forefront  of the industry,” she said.

TAFE Queensland’s blockchain course is project based and focus on the outcomes for students who graduate with a portfolio of work, making them highly employable across many industries.

Ms Dickinson said the curriculum was developed to largely skill people for the non-tech roles such as the management or operational roles within an organisation.

“While software engineers and IT experts are needed to implement and support blockchain applications, non-tech people are also needed to handle business operations that are vital to the overall blockchain project,” she said.

“For example there is a high demand for blockchain project managers who are in charge of the entire lifecycle of a blockchain project — from planning, supervision to execution, and deployment.”

Students of TAFE Queensland’s Diploma of Applied Blockchain (10849NAT) will acquire a range of knowledge, skills and specific competencies to enable them to apply blockchain technologies and gain employment in just about any industry sector in the world.

Classes are taught online with regular face to face workshops at the TAFE
Queensland Coomera campus including virtual participation.

For more information on TAFE Queensland’s Blockchain course go to
tafeqld.edu.au or call 1300 308 233.

Categories
Australia Binance Binance Australia Crypto News Trading

Binance Lite Provides Australians With Easy Bitcoin Trading

Binance Lite transforms your Binance mobile app into a simplified, easier to use interface for beginners who are entering the crypto space to buy, sell and trade Bitcoin and cryptocurrencies using their mobile.

Getting started with cryptocurrency trading can feel daunting when faced with a long list of possibilities and options. Switch to the Lite version of the Binance app for a simplified crypto trading experience!

Binance is one of the largest crypto exchanges in the world and have established themselves in Australia as Binance AU to help you take your crypto mobile experience to the next level.

Binance Lite Features

  • Beginners guide link at the top of mobile screen
  • Simple Buy, Sell, Deposit, Convert Button at bottom of mobile screen
  • Clear to see account balance and coin holdings
  • Easy to find all your favourite cryptos with the star button
  • Easy deposit and withdraw buttons
  • Less “noise” as it hides all the advanced features such as Futures, Launchpad, Liquidity, Battle, Earn etc
Binance Pro vs Binance Lite

How to Get Binance Lite

  1. Download the Binance App on your Android or iOS device.
  2. Log in to your Binance account.
  3. Click the profile icon located on the top left corner of the Binance App home screen.
  4. Tap the “Lite” switch and you’re done.

Binance Lite Mobile App User Interface

  • Binance Lite Home Screen
  • Buy Sell Trade Deposit
  • Buy Crypto Method
  • Buy Crypto Amount
  • Buy Crypto
  • Account Balance

Please note that Binance Lite is only available for the mobile app, there currently is no version of Binance Lite for desktop computers.

Also read: How to Deposit AUD into Binance Australia via PayID/Osko

Categories
Australia Bitcoin Cryptocurrencies DeFi

Sydney DeFi Project Marhaba To Provide Islamic Finance Using Ethical Practices

Based out of Sydney, a new DeFi platform called Marhaba will be working to explore ways to bring decentralised finance to over 2 billion Muslims in a way that does not contradict Islamic laws on usury and investments.

Marhaba – which means “Welcome” in Arabic – is a new DeFi platform started by Naquib Mohammed, after noting the moral dilemmas many Muslims face when thinking about getting into cryptocurrency.

“We are building a platform that aims at the inclusively of the community and a trusted place where faith-conscious Muslims can be onboarded without any hesitation or doubt.”

Solving Religious And Moral Dilemmas

Set of Elegant Ramadan Kareem Lantern or Colorful Lights in Islamic Pattern

Since Islam prohibits high-interest loans, aggressive derivatives and excessively risky investments, one can see how cryptocurrency may put devout Muslims in a bit of a pickle when considering whether to get into crypto and decentralized finance.

“In the Muslim countries, we found that 99% of the time, people ask: ‘Is this token Halal? Is this token Shariah-compliant?’ […] Question number two is: ‘Where do you buy this? The reason that Bitcoin is still under discussion by some scholars in the Islamic ecosystem is because nobody knows who the creator of Bitcoin is. If you don’t know who created it — that means the thing is under doubt.”

Additionally, artistic depictions can also be tricky to deal with due to religious laws concerning idolatry. However, as anyone familiar with mosques such as Nasir al-Mulk in Shiraz can tell you, abstract patterns are fair game – which allows for the creation of NFTs that do not conflict with Sharia Law.

Marhaba Finance aims to solve both of these issues by collaborating with Islamic scholars to create their platform according to the precepts of Islamic law. They will also launch a non-custodial “Sahal” wallet, which will allow for transfers and custody of “Shariah-screened NFTs and tokens”.

Ethical Wallet and Trading Platform

According to the whitepaper, the project will launch in 2021 both a “Sahal Wallet” and Ethical Trading Platform and other features through the Marhaba Decentralized Financial Platform (MDFP).

The project will launch the $MRHB ERC-20 token using Ethereum with a supply of 500 million tokens (see the whitepaper for token allocation).

The NFT marketplace is scheduled for launch later this year. With a sharia-compliant version of yield farming will also be coming to the platform – as well as ways to donate to charity, fulfilling another obligation to the five pillars of Islam.

The project is also supported by Blockchain Australia and Neo Legal to assist with crypto regulations.

Read more about Marhaba on LinkedIn.

Get involved on the Marhaba DeFi interest Form.