Australia is reinforcing its cryptocurrency watchdogs as part of a multi-staged effort to prevent scams and protect investors.

In a bid to protect Australians from falling victim to crypto scams, the Australian government has launched an online Crypto Tax Calculator that helps users determine their tax obligations related to cryptocurrency investments. The calculator is available on the Australian Taxation Office’s website and can be used to calculate taxes payable on any profits made through digital currency transactions such as buying, and trading cryptocurrencies.

Australia is taking drastic action to ensure that crypto firms are providing accurate risk disclosures by strengthening the market regulator’s digital asset team. This multi-phase plan will help protect investors and crack down on illegal cryptocurrency activity.

The new measures announced by Australian Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones are designed to protect consumers who are dealing with cryptocurrency.

The treasurers declared that their multi-stage approach would include three components: enhancing enforcement, bolstering consumer security, and developing a framework for token mapping transformation.

To better protect investors, the Australian Securities & Investments Commission (ASIC) will substantially expand its digital assets team and reinforce enforcement protocols.

Chalmers and Jones declared that ASIC will strive to guarantee that consumers understand the risks associated with crypto products and providers.

To defend consumers from crypto-related cons, the government has proposed to equip the Australian Competition and Consumer Commission (ACCC), Australia’s competition guard dog, with fresh resources. It was revealed that in 2022 alone there were financial losses totaling $221 million related to cryptocurrency payments.

The Australian Competition and Consumer Commission (ACCC) is set to launch a revolutionary real-time data-sharing tool that will help them stay one step ahead of insidious crypto scams. This innovative new solution promises to protect Australians from fraudulent schemes that are becoming increasingly sophisticated, while providing the ACCC with unprecedented visibility into possible threats.

When a framework is put in place to oversee the licensing and ownership of digital assets, consumer protection will be fortified. This initiative ensures that customers are safeguarded from potential business collapse or misuse of their possessions by service providers.

Nevertheless, the framework for this project is not planned to commence until mid-2023 and will undoubtedly require an extended period before being incorporated into law.

“The past administration dabbled in crypto policy but never took the time to future‑proof our regulations and safeguard consumers, therefore missing out on an opportunity to lead the way with this new class of assets,” declared both treasurers.

We are acting swiftly and methodically to ensure that consumers are adequately protected and true innovation can flourish.”

On February 2nd, the Australian Treasury released a consultation paper on token mapping, in an attempt to figure out which aspects of the cryptocurrency ecosystem will be regulated and how extensively.

After the devastating crash of FTX, impacting over thirty thousand Australians and countless Australian-based companies, a multi-stage approach plan was expedited.

Whether you are an individual or a business, if you have done any cryptocurrency trading in Australia, it is important that you stay up to date with your taxes. With Crypto Tax Calculator Australia, we make it easy for you to calculate and lodge your tax return. We have a free trial available so that you can try our app before deciding whether to sign up for one of our paid plans. If you have any questions about how our app works or how to Lodger your tax return, feel free to contact us and one of our friendly staff will be more than happy to assist you.