Bitcoin, recognized as the most widely accepted digital currency, has witnessed a considerable surge in global adoption. The Australasia region, encompassing Australia and New Zealand, mirrors this global trend. The progressive approach of these countries towards cryptocurrencies has fostered a conducive environment for the growth and acceptance of Bitcoin. This is further bolstered by the comprehensive legal frameworks that have been established to regulate the use of Bitcoin, thereby boosting investor confidence and promoting its adoption. In this context, this article aims to delve into the intricacies of Bitcoin’s adoption and the prevailing legal landscape in Australia and New Zealand. In the fast-paced world of modern finance, few innovations have captured the imagination quite like Quantumator which is an Online trading platform.
Bitcoin Adoption in Australia
Australia has distinguished itself as an early and enthusiastic adopter of Bitcoin and other cryptocurrencies. As per the statistics gathered by Finder, it’s estimated that nearly 17.8% of Australians were already engaged with cryptocurrency as of 2021. This places Australia among the top three nations worldwide in terms of cryptocurrency adoption rates. The substantial growth in the use of digital currencies in the country is largely due to its comprehensive and supportive regulatory environment. Bitcoin and other cryptocurrencies have been recognized as legal and are treated as property in Australia, thereby encouraging trade, spending, receiving, and storage of cryptocurrency. These favorable conditions continue to fuel the widespread adoption and acceptance of cryptocurrencies in Australia.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) regulates the cryptocurrency sector and requires all crypto exchanges operating in Australia to register with them. This regulation has provided legitimacy to cryptocurrencies and has encouraged more Australians to invest and trade in Bitcoin.
In addition to investing and trading, Bitcoin is also being used as a payment method in Australia. Several Australian businesses have started accepting Bitcoin payments, ranging from cafes and restaurants to real estate agencies and law firms.
Legal Landscape of Bitcoin in Australia
The legal status of Bitcoin in Australia is clear and well-defined. In 2017, the Australian government declared that cryptocurrencies like Bitcoin are legal and are considered property under the Australian taxation law. Therefore, they are subject to Capital Gains Tax (CGT), and cryptocurrency transactions must be reported for tax purposes.
Furthermore, the government removed the double taxation of cryptocurrencies in 2018, which means that purchases of digital currency are no longer subject to Australian Goods and Services Tax (GST). These moves have further spurred the acceptance and use of Bitcoin in Australia.
Bitcoin Adoption in New Zealand
New Zealand, although smaller than Australia, has also shown a keen interest in Bitcoin and other cryptocurrencies. As per a report by Statista, around 6% of New Zealanders owned cryptocurrencies in 2020.
Bitcoin is being increasingly used for various purposes in New Zealand – from investment and trading to making purchases. Some businesses in New Zealand also accept Bitcoin as a valid form of payment.
Legal Landscape of Bitcoin in New Zealand
New Zealand has a progressive approach towards Bitcoin and cryptocurrencies. In 2020, the New Zealand Inland Revenue Department (IRD) made it legal for companies to pay salaries in cryptocurrencies. This was a landmark move that positioned New Zealand as one of the few countries globally to acknowledge cryptocurrencies as a legitimate form of payment.
However, there are stipulations – the payments must be for services performed under an employment contract, be for a fixed amount, and form a regular part of the employee’s remuneration. Additionally, the cryptocurrency being paid should be able to be exchanged for fiat currency.
Like Australia, Bitcoin is also considered property in New Zealand and is therefore subject to taxes. New Zealand’s tax agency issued guidance on how Bitcoin-related income should be taxed, providing much-needed clarity for investors and traders.
Conclusion
In conclusion, both Australia and New Zealand offer a conducive environment for the growth and adoption of Bitcoin. The clear and supportive legal frameworks in these countries have not only boosted investor confidence but also paved the way for wider acceptance of Bitcoin as a valid form of currency. As the global cryptocurrency landscape continues to evolve, it will be interesting to see how the adoption and regulation of Bitcoin in Australia and New Zealand progress.
