· Tax: In 2014 the Australian Taxation Office ruled that Bitcoin, and therefore all Digital Currencies, were to be treated as “taxable supply” for taxation purposes. This means that instead of just a transaction fee being subject to GST – as would be the case if Bitcoin were treated as a form of money – the value of the transaction is inflated by 10 per cent as well. This “double-GST” arrangement is by far the biggest impediment to the growth of the Digital Currency industry in Australia and is something ADCCA has been working hard to correct through its government engagement efforts.
· Banking Access and Financial Inclusion: All new entrants can struggle to manage relationships with established players, including in financial services. ADCCA has been acting to develop relationships with key players in the financial services industry to find common ground and build on the opportunities offered by technological change.
· Regulatory and Legislative Settings: While we do not want government to stifle our industry, some regulation is essential for business and investment certainty. The Australian parliament is currently conducting an inquiry into the Digital Currency Industry to find the best way to provide a common sense and pro-growth regulatory setting for the sector.