The Australian government has made an announcement in the 2018-2019 budgets, that it would soon introduce a cash payment nationwide with the limit of $10,000 which will be accepted by the businesses for the goods and services or for the payments made. Transaction of minimum $10,000 or more than that would take place through electronic media. The bill got published on 26th July.
This measure is purposed to tackle the issues of tax evasion and other illegal activities. But what about cryptocurrency? If we treat crypto transactions like the cash payments, the limit of $10,000 could create the ability to move cryptocurrency for the industry without unintentionally dwindling afoul of the laws. Bill reveals that people have the concern about this issue, mainly about the statement of the bill that even being electronic, cryptocurrencies are more of the same kind to cash payments.
It says, “Some forms of electronic payment more closely mirror physical currency. In particular, cryptocurrencies and other digital currencies are generally unregulated and do not create clear records of transactions in a form that can easily be used to identify the parties to a transaction.” On the other hand, the bill doesn’t impact the cryptocurrency payments.
If we talk about the bill, cryptocurrency is not well-thought-out cash in that case. For the limit of $10,000, it doesn’t count, and though the payment is crypto and cash half-half, then also it doesn’t apply till the cash portion reaches the minimum of $10,000 or more. Conditions do not apply to cryptocurrency, it isn’t cash.
As the bill explains, “Digital currency is a new and developing area in the Australian economy. Unlike physical currency, it does not have a firmly established regulatory framework or industry structure. This makes it difficult to apply the cash payment limit in a way that would not largely prevent the use of digital currency in Australia or significantly stifle innovation in the sector. At the same time, there is little current evidence that digital currency is presently being used in Australia to facilitate black economy activities.”
It continues, “Given this, the Government has decided at the present time to effectively carve digital currency out from the cash payment limit. This position will remain under ongoing scrutiny to ensure that the exemption for digital currency payments remains appropriate in light of the current use of digital currency in the Australian economy.” It means that digital currency can’t be covered through the bill. On the other hand, it is subject to change.