Bitcoin regulation in Australia
at the end of June 2013, after the German parliament decided that bitcoin would be tax-free if it was held for more than one year, bitcoin was recognized as a "unit of account" by the German Ministry of finance, which means that bitcoin has been regarded as a legal currency in Germany and can be used to pay taxes and engage in trade activities< In August 2013, judge Amos mazant of Texas District Court ruled in a case of bitcoin virtual hedge fund that bitcoin is a kind of currency and should be included in the scope of financial regulation
legal status
bitcoin can still be considered as legal at present. In the world, bitcoin can be regarded as a virtual commodity and protected by law; If bitcoin cannot be officially recognized as a kind of currency by law, it may bring inconvenience to the businesses and indivials who accept bitcoin in tax declaration, because the businesses who accept bitcoin will be regarded as barter transactions, and such transactions are more troublesome than ordinary transactions in tax declaration
at the same time, bitcoin, as a commodity highly similar to currency, needs to meet the demand of anti money laundering. Bitcoin needs to be included in the personal property declaration, banking anti money laundering system, anti insider trading, anti market manipulation and other systems in terms of transaction and possession. Bitcoin exchanges and storage institutions may also need government supervision and licensing. Some fast-growing bitcoin exchanges and payment service providers are actively exploring cooperation with regulatory agencies to bring bitcoin payment into the regulatory framework of anti money laundering and anti-terrorism financing by applying for licenses and actively communicating with regulatory authorities
in Europe, the European Central Bank published a report on "virtual currency architecture", and the French bitcoin trading platform obtained the PSP qualification. On December 6, 2012, the central bank wrote in the report: "this report is the first attempt to provide a basis for discussing the virtual currency system. While these systems may play an active role in financial innovation and in providing consumers with alternative means of payment, they also clearly create risks. " "Because of the small size of virtual currency systems, these risks do not affect anyone other than the users of these systems," the report added The report reviews the history of bitcoin and reviews its basic features, including currency and technical operation.
however, it has not been fully and effectively regulated at present (as of March 6, 2019)
if we understand bitcoin as a kind of "currency", then it is equivalent to US dollars leaving the United States. Usually, after the US dollar leaves the United States, banks in other countries will help manage it. However, it is impossible to count the scattered us dollars that are neither in the United States nor in the hands of banks and other financial institutions. For example, in some areas of Africa where there are no banks, the US dollar is used
these scattered us dollars are equivalent to bitcoin
how to regulate these scattered us dollars
generally, in addition to controlling the issuance of US dollars, US dollar regulation also controls the circulation and usage ports. The Federal Reserve controls the number of new currencies issued each year according to the flow and damage of dollars abroad. At the same time, we should supervise the inflow and outflow of US dollars, so as to keep us dollars in an environment that can be roughly traced, so as to facilitate the issuers to count the total amount, so as to avoid excessive inflation or deflation
in fact, these scattered us dollars exist in some deregulated environments. Although they are out of control, they will not affect the overall economic situation
If anyone wants to influence the international economy through these scattered us dollars, then it must enter the existing regulatory system. In this way, these scattered dollars are regulated
for bitcoin, we can also learn from these forms of regulation
first of all, from the point of view of the issuing end, although the total number of bitcoin is now 21 million, it is also "set before" and cannot be changed
recently, it has been mentioned that the 21 million bitcoin limit should be abolished, which means that the issue of bitcoin is not stable. Therefore, it is necessary to control the issuance of bitcoin from the development end
you need to get inside the development side and become a core developer
Second, monitoring from the circulation link. In fact, this is the most difficult monitoring at present, because the blockchain is anonymous, the user is anonymous, and the receiver is anonymous
even though we can trace the circulation path of bitcoin by technical means (for example, we can know that a transaction is sent from a small house in the United States to a commercial building in Germany), it is only a drop in the bucket for tens of millions of users in the whole environment. How to trace and manage the overall transaction data is a huge problem
you can't know from the transaction data whether the user is engaged in illegal transactions
what should we do? Regulators have come up with a way to bind personal identity information to the user's real name, your exchange account number and bitcoin wallet address. But this is also a temporary solution, because it can only monitor the use of bitcoin in specific situations. An indivial can use multiple bitcoin wallet addresses. You don't know when he will apply for a new one
in terms of circulation, there is also a monitoring system to control the exchange channel between bitcoin and local legal currency. Banks in some regions do not provide financial services for users who exchange bitcoin for legal currency, and some countries and regions prohibit financial institutions from providing bitcoin and local legal currency exchange services
if users secretly exchange huge amounts of bitcoin, some clues can be found through the bank transfer records, so as to crack down on illegal acts in time. As for those who make little trouble, let him go
thirdly, restrict the use. This is relatively easy to achieve. For example, relevant laws have been issued to prohibit the use of bitcoin transactions. Although it's impossible to ban it completely, it's better than letting it run wild All over the world, it seems that what is forbidden is not completely forbidden
for example, before using bitcoin in public, you must use your real name, and you have to pay taxes to hold or use bitcoin
of course, it's OK for users not to do so, so it's better to use its assets in the dark
having said so much, now you know that bitcoin can be regulated, but it's not so well managed. Many measures have been taken, and it seems that they are not effectively regulated. Under what circumstances can bitcoin be effectively regulated? Users consciously report their holdings of bitcoin to the regulatory authorities. The regulatory authorities add some development functions to the bitcoin to achieve supervision, or they don't need to use it, so it doesn't matter at all
in fact, it can't be controlled so strictly, as long as it can't be controlled in the range of big waves. After all, there is light and dark, and there may be no gray space at all
new technology will surely have an advantage when it comes to living now.
in October 2013, bitcoin Bank of Australia was attacked by hackers, with a loss value of more than US $1 million. This incident has aroused the concern of bitcoin security in Australia. The Reserve Bank of Australia and the Australian tax office have said they want a virtual currency tax like a business transfer tax
Bangladesh
the Central Bank of Bangladesh banned the use of virtual currency in September 2014. Using bitcoin will be punished by law
Brazil
Brazil is one of the few countries in the world that has enacted laws related to electronic currency payment systems. Brazil has not banned bitcoin
Bolivia
for regulatory reasons, the Central Bank of Bolivia (BCB) has banned the use of bitcoin. BCB believes cryptocurrency will help business entities evade taxes
Canada
bitcoin is not considered legal, that is, bitcoin is not recognized by Canadian law. Canada's tax authorities plan to implement the same tax plan as barter trade and speculative trading for the bitcoin
China
China is one of the few countries in the world that ban bitcoin completely and prohibit financial institutions and banks from dealing with bitcoin transactions. In December 2013, the people's Bank of China issued a notice calling bitcoin & quot; Virtual goods;, And prevent it from becoming money
trading has been suspended
Ecuador has banned bitcoin, but it has chosen to set up a new state-owned electronic currency and monetary system, and the currency will be protected by the assets of the Central Bank of Ecuador
EU
at present, the EU still has different views on the classification of bitcoin. In October 2012, the European Central Bank's report on virtual currency concerns the legality of bitcoin under the EU legal framework. The European Banking Regulatory Authority issued a bitcoin risk warning, saying that the use of bitcoin has not been restricted at present
Finland
Finland has relevant regulations for the use of virtual currencies such as bitcoin. The relevant regulations are issued by the Finnish tax authority Vero skatt. Any gains arising from bitcoin transactions will be subject to capital gains tax
Hong Kong
Hong Kong has no regulations for bitcoin or any other virtual currency. However, the government is closely monitoring the use of bitcoin to prohibit money laundering, fraud and other illegal activities
India
India does not explicitly stipulate or prohibit the use of bitcoin. However, the Reserve Bank of India (RBI), equivalent to the Central Bank of India, has been forced to shut down India's largest bitcoin trading platform after it issued a notice that the use of bitcoin could cause money laundering and security problems
Israel
the Israeli tax authority is considering levying income tax on bitcoin transactions. Israeli banks even blackmail bitcoin payments
Kyrgyz
Kyrgyz central bank has banned the use of digital currency and bitcoin for the reasons of lack of centralized management, high currency risk and legal problems
Russia
the Central Bank of Russia believes that bitcoin may be used for money laundering and terrorist financing. Therefore, the Russian government banned the use of bitcoin
Taiwan
Taiwan's financial supervision commission is concerned about the uncertainty and speculation of bitcoin, so Taiwan opposes the installation of bitcoin ATM
UK
at present, there are no relevant regulations for the bitcoin. Profits or losses from bitcoin transactions are subject to capital gains tax, while the purchase of bitcoin is still subject to VAT
the U.S.
the U.S. is probably the most supportive country for virtual currencies such as bitcoin. There are no final rules on bitcoin. However, there are also many new rules for the establishment of bitcoin management framework.
Hello, I'm glad to answer this question
for example, the well-known Matcha lbank has applied for Australia austrac license
in April 2018, the Federal Parliament passed the anti money laundering and anti terrorism financing amendment bill 2018 (AML / CTF amendment), which amended Australia's anti money laundering and anti terrorism financing law. So the digital currency exchange, which will operate in Australia since then, will now be supervised by austrac, the Australian financial regulator, and will also be supervised by money laundering and terrorist financing activities. Australia's new law gives austrac the right to regulate the trading of various cryptocurrencies (including bitcoin, Ethereum, ripple, etc.) on digital currency exchanges
the Australian license is a powerful digital license, many of which are registered because of its strength. Moreover, the conventional infrastructure in the Australian financial sector is good, which constitutes the margin proct market
to apply for austrac license, you must own an Australian company to apply for registration
to apply for austrac license in Australia, the information required for applying for austrac license is as follows:
1. Basic information of Australian company, including company tax number
2. Detailed information of shareholders and directors of Australian company (scanned passport, address, etc.)
3. Address of Australian Office
4. Notarization of no criminal record of shareholders and directors of Australian companies
the application time is about 2 months
in the budget summary for 2017-2018, the government said that as part of the plan to "make it easier for digital currency business to operate in China". This will ensure that the general sales tax (GST) is not charged more than once throughout the supply chain
the conclusion is as follows: "the government will make it easier for the new innovative digital currency business to be carried out in Australia."
license requirements will apply AML / CTF rules to enterprises trading digital currency (such as bitcoin exchange). More specifically, digital currency dealers will be required to:
1. Digital currency dealers in Australia must handle austrac and provide all business details. If the company providing digital currency transactions does not apply for austrac's license, it may result in two years' imprisonment, a fine of aud105000, or both
2. Establish and maintain AML / CTF programs to identify, mitigate and manage the money laundering and terrorist financing risks they may encounter
3. Identify and verify the customer's identity
4. Report suspicious activities and transactions involving legal currency, exceeding aud10000 or more (or equivalent) to austrac
5. Maintain special records on transactions, customer identification and AML / CTF projects for 7 years
the trading platform has complete qualifications, and natural users and investment talents can rest assured. Therefore, legal qualifications have become the focus of attention in terms of law, publicity and promotion. Even it is normal for the platform to apply for trading licenses in multiple countries. Let me briefly introce the application requirements and process of Australian licenses
to apply for Australian austrac license, you must own an Australian company to apply for registration<
to register an Australian company, the following conditions are required:
1. There are three names (in English) of the Australian company to be registered, two of which are optional, and the names end with Pty Ltd or Pty Limited
2. The registered address, telephone number, fax number and email address of the company in Australia. If the address is leased, the name of the lessee should be provided to confirm that the Lessee agrees to use the address as the registered address of the company
3. The business nature and business direction of the company in Australia
4. There should be at least one director of an Australian company, one of whom must be an Australian resident. Personal information should be provided: date of birth, place of birth, current address, contact information including telephone number and e-mail address. UCG priority note can provide clients with employment services of local directors in Australia
5. There should be at least one shareholder in an Australian company. There is no nationality restriction. The shareholders and directors can be the same person. Personal information: date of birth, place of birth, current address, contact information including telephone number and email address
6. Personal information of the director in charge of company registration (date of birth, place of birth, current address, contact information including telephone number and e-mail address)
7. Detailed distribution of shares of directors or shareholders of Australian companies. The default number of shares is 100, and the share price is set at a $1 per share
license application
1
2. Write the business plan and operation plan of digital currency dealers
3. Prepare and write application materials
4. Write anti money laundering regulations and anti terrorist organization financing regulations, as well as the daily operation plan of the regulations
5. Submit license applications to austrac and ASIC in Australia
in general, Australia's austrac digital currency license has the same cost performance as the US MSB, and is highly recognized in the currency circle.
The gold content of austrac digital currency exchange license can be seen from the regulatory requirements
austrac is the financial regulatory agency in Australia, which is responsible for the prevention and detection of line washing and fear of walking. Digital currency dealers in Australia must handle austrac and provide all business details. If the company providing digital currency loan transaction does not apply for austrac license, it may be sentenced to two years' imprisonment or aud105000 fine, or both. Australia has many advantages, such as the government's attitude towards development, fast operation process, and a financial system matching Europe and the United States. Therefore, Australia has also become an ideal place for many investors to register, where financial regulatory means are perfect and can be used as the preferred location for blockchain projects
austrac is Australia's financial regulatory agency, responsible for preventing and detecting money laundering and terrorist financing. The federal government enhances the compliance of reporting entities with AML / CTF laws and regulations by expanding the powers and functions of the CEO of Australia Group
after the AML / CTF amendment comes into effect, austrac has the following powers:
1. The CEO of Australia can give notice of a wider range of violations, including non-compliance with KYC reporting and record keeping proceres
2. The chief executive officer of austrac can issue the latest policy direction to the license holding companies to trace their breach of obligations
3. Give the police and customs officers the right to search and detain the person in charge of the license holding company in violation of their obligations at the Australian border< br />
Bitcoin holders in Australia said that a number of well-known local banks appear to be intent on freezing their bank accounts and prohibiting them from using legal tender to buy cryptocurrency, and at least one bitcoin exchange has been "uncomfortable" with such behavior. On the other hand, many bitcoin holders are also very uneasy about this practice of Bank of Australia, so many netizens have disclosed it on social media and caused heated discussion{ RRRRR}
at present, spokesmen of Australia's "four major banks" have said that their actions are based on anti money laundering laws and regulatory requirements, and are not specifically targeted at bitcoin or other encrypted digital currencies