Australia accepts Bitcoins as legal tender

Australia has now recognized Bitcoins as legal tender of Money. Australia has officially confirmef in it’s budget summary for 2017-18 that Bitcoins will be treated “Just Like Money” from this year.

Australia also confirmed that from now onwards, Bitcoin is not subject to double taxation, as it was earlier.

The following are some excerpts from the budget summary of Australia for the year 2017-18

The Government will make it easier for new innovative digital currency businesses to operate in Australia. From 1 July 2017, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for GST purposes. Currently, consumers who use digital currencies can effectively bear GST twice: once on the purchase of the digital currency and once again on its use in exchange for other goods and services subject to the GST.”

“Innovation will drive productivity growth in Australia .The Government is committed to establishing Australia as a leading global financial technology (FinTech) hub and is announcing a new package that aims to position our local fintech industry as a world leader” it continues.

Earlier Australia was double-taxing crypto currencies. As mentioned in the budget summary as well, crypto currencies were taxed once on the purchase of the digital currency and once again on its use in exchange for other goods and services subject to the GST.

This was a major financial problem for crypto currencies enthusiasts which caused well-known Bitcoin exchanges/operators to quit the market as, double taxation was killing it.

But now like most of the countries in the world, Australia also realized the benefits of crypto currencies and thus decided not only to regulate it but also introduce tax policies on it.

Now this can be another factor which can supplement the rise of Bitcoin prices in future.  Bitcoin prices are continuously rising and the major reasons for it is countries around the world are starting to recognize it as a legal tender of money. Japan legalized Bitcoins on April 1 2017. India may legalize it in June.

Russia will legalize Bitcoins by 2018.

Also, as Japan legalized Bitcoins, people are starting to use it as a currency. Therefore demand for Bitcoin is increasing and thus the prices.

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