The Australian Tax Office (ATO) recently sent out warnings in a statement on May 28 to crypto traders that the agency can view transaction data from other businesses and cryptocurrency exchanges. The announcement has caused privacy coins Monero (XMR), ZCash (ZEC), and Dash (DASH) to experience a price increase of over 20% in 24 hours.
The announcement urged Australia’s 600,000 crypto traders to pay capital gains on their holdings. As a result, the price of the most popular privacy coin, Monero, surged from US$22 to US$293 the morning after the statement.
The assistant commissioner of the ATO, Tim Lo, said in the statement:
“While it appears that cryptocurrency operates in an anonymous digital world, we closely track where it interacts with the real world through data from banks, financial institutions, and cryptocurrency online exchanges to follow the money back to the taxpayer,”
According to a May 2021 Treasury tax compliance plan for America, cryptocurrency transactions may increase in value over the next decade. The growth will happen mainly in the face of a broad-based financial account reporting regime and regardless of crypto making up a relatively small portion of income today.
The sudden increase in the price of XMR was comparable to the 30% gains it experienced on May 21 after an announcement from the US Treasury. The US Treasury instructed that traders who make crypto transfers above US$10,000 must report such transactions to the Internal Revenue Service (IRS) from the year 2023.
Image Credits: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
