When it comes to cryptocurrency regulations in Australia, there are none. For the most part, they are completely open for anyone who wishes to take advantage of them. This means that it is now possible for the average person to invest in crypto assets with limited regulation or tax implications.
These allow people to invest in cryptocurrencies without having to pay the costs associated with traditional market securities.
The lack of regulation is not a problem. At least, not in the case of cryptocurrency. While there are few regulations surrounding the assets, no one has been hurt by this lack of regulation. With crypto assets, it is important that people understand that everything is a gamble and that they understand the risks associated with any kind of investment. There are also some situations where people have fallen victim to scams, but these are few and far between.
Those who regularly use cryptocurrencies have clear benefits over those who transact regularly in the fiat system. When it comes to this, it is an excellent way for people to live their lives while avoiding many of the pitfalls that are present in the traditional monetary system. There are also no fees associated with using cryptocurrencies, which is really great news for those who regularly use them.
Future Cryptocurrency Regulations in Australia
The Australian government has been trying to crack down on unscrupulous cryptocurrencies with recent regulatory changes. In 2016, the Australian Taxation Office labeled cryptocurrencies as a “tax instrument” in which they can be taxed at both capital gains and income levels. They can also be regarded as a type of asset option. However, the law only applies to Australian citizens and companies trading cryptocurrency, not foreign residents trading on an exchange outside Australia.
The Australian Senate has also been trying to weed out unlicensed and fraudulent exchanges by proposing that cryptocurrency traders keep records of capital movement, transactions, and even identities of other traders. It was suggested that exchanges only be allowed to operate if they can uphold such regulations. In 2017, the Australian government also proposed a ban on advertisements containing cryptocurrencies, ICOs and cryptocurrency exchanges. These regulations were criticized by some as having “too broad a scope” and would prevent companies from reaching potential customers for their ICOs or cryptocurrency exchanges.
On the other hand, some have argued that these regulations are too lenient. For one thing, it can be quite expensive to continually report cryptocurrency sales on your taxes. Another concern is that the government hasn’t done enough to prevent cryptocurrency fraud. There have been several instances of fraudulent ICOs being held in Australia alone. It has a lot of potential to benefit Australia in the long run, but it’s also potentially dangerous. If you are looking for a secure venue to trade, be sure to read our CommSec vs SelfWealh review, which are the two best local platforms.
The security risks of crypto in Australia
If you’ve been following the cryptocurrency craze, you know that Aussies have a unique way of dealing with it. For instance, most Aussie banks don’t allow customers to buy Bitcoin through credit cards or bank accounts. In fact, if your money moves from one Australian account to another Aussie account via a cryptocurrency system like Bitcoin, it will be considered a foreign transfer and face high fees. We already know that local crypto exchanges like Bitfinex and BTCMarkets are working with Aussie banks to help protect against money laundering and terrorism financing, which is great. But there’s still the issue of security breaches, phishing attacks, brute force attempts, social engineering, and unauthorized access which pose a constant threat to every cryptocurrency platform.
Crypto exchanges have had time to adjust after suffering through a year or so of hacks and thefts. However, the threat of theft and hacks is only one of the risks that face digital currency platforms. On a more positive note, Australian companies and entrepreneurs are more familiar and comfortable with cryptocurrency than in other countries. This means there’s a growing demand for local cryptocurrency exchanges and related businesses. But on the other hand, Aussies use cryptocurrency for more than just virtual payments right now. They’re turning to this new form of money because it gives them more options when it comes to managing their money.
How Aussie Users Are Phishing Crypto Criminals
A topic that isn’t getting enough attention is phishing attacks. Attackers are constantly adapting their methods to take advantage of human weaknesses. Their biggest weakness is greed, which they often exploit by posing as a trusted person or company. When it comes to cryptocurrency users, two of their biggest weaknesses are greed and curiosity. The most common way hackers try to trick Aussies into handing over their login information is via email phishing attacks. They might create an elaborate email that resembles a message from the Australian Taxation Office which warns taxpayers about an upcoming audit of digital currency accounts. The email then asks Aussies to click a link that leads to a malicious site. There, the hacker will try to trick the victim into providing login information like their online banking username and password.
The hackers are trying to take advantage of the fact that Aussies are turning to cryptocurrency for better money management tools. They trust this new form of currency to give them more control over their money because it allows them to have more anonymity. Plus, they want to hide their transactions from government taxes, especially in countries where cryptocurrencies are banned. So take a few extra minutes when you’re checking out an Australian cryptocurrency exchange and make sure you’re doing so from a reliable site. If you’re new to cryptocurrency, here are a few red flags to watch out for:
Do the URLs look trustworthy?
Are you on a website that looks trustworthy? If not, don’t enter any personal information. Consider running a reverse image search of the site on Google to see if there have been reports of phishing attempts. Hackers will often upload an image of a legitimate site and use a free online tool called TinyPNG to compress images and make them load faster. But this will make it more difficult for you to verify whether you’re on a real site or not.
Check the location: check the URL and extension
Is the website located in Australia? A lot of phishing attempts happen with sites that aren’t located in your country. Don’t assume an Aussie crypto exchange is always located in Australia just because it looks like it is. Check the address bar of your browser to see where the site is located
