DeFi Nomad: Australia
Learn all about crypto laws and regulations in Australia
So you want to be a DeFi Nomad?
When it comes to connecting the world beyond nations and countries, the internet has provided immense opportunities. And in a post-pandemic reality, an increasing number of people are harnessing the power of technology and decentralized finance(DeFi) to explore a nomadic way of working and living.
Welcome to DeFi Nomad, a series where we explore the global opportunities of DeFi. We’ll be taking you through countries around the world and discussing their attitudes toward crypto — including laws, restrictions, and regulations — so you can make more informed decisions about the capabilities of your assets as you move from place to place. From tax laws to the cost of living, DeFi Nomad will provide you with all the information so that you can make more informed decisions as you travel the world with crypto.
DeFi Nomad Series:
- Australia is a great destination for DeFi nomads thanks to its advanced infrastructure, tech-savvy population, and robust regulatory framework.
- Cryptocurrency is not recognized as legal tender in Australia, but it is considered a form of property and is subject to income tax and capital gains tax.
- There is a wide range of crypto-related services, such as exchanges, payment processing, and merchant services.
- A high crypto ownership rate makes Australia an attractive destination for DeFi nomads.
Crypto adoption in Australia
Australia is fast becoming a preferred destination for DeFi nomads, thanks to its advanced infrastructure, tech-savvy population, and robust regulatory framework. Australia has one of the highest crypto ownership rates in the world, with 28.8% of Australians owning or having owned cryptocurrencies as of 2021, and decreasing slightly to 25.6% in 2022. The country also boasts a strong regulatory framework, providing a safe space for digital currency users and businesses to operate.
Next stop, the land down under? Here’s all you need to know:
Australia is one of the world’s leading countries in terms of blockchain and cryptocurrency adoption. The country’s government has taken a progressive stance toward cryptocurrency and blockchain technology and is actively looking for ways to regulate and promote the industry.
The Australian Securities Exchange (ASX) was one of the first major exchanges to launch a blockchain-based system for post-trade settlement. The country’s central bank, the Reserve Bank of Australia (RBA), is also exploring the potential of blockchain technology and the use of central bank digital currencies (CBDC) and has released a number of reports on the subject.
Australia has also been a leader in terms of cryptocurrency adoption. The Australian Tax Office also recently released guidance on how to pay taxes on cryptocurrency transactions.
The Australian government is also looking to encourage innovation in the blockchain and cryptocurrency space, with the establishment of the Australian Digital Currency and Commerce Association (ADCCA). The organization’s mission is to promote the responsible use of digital currencies and to provide a forum for industry stakeholders to discuss and develop standards for the industry.
Can you buy crypto in Australia?
Yes, you can buy crypto in Australia. Australia is one of the world's most crypto-friendly countries, and several exchanges offer services for buying and trading crypto. Some of the most popular exchanges include CoinJar, CoinSpot, and BTC Markets. Additionally, some exchanges offer over-the-counter (OTC) services, allowing clients to purchase crypto directly from other traders.
Is crypto recognized as a legal tender in Australia?
Cryptocurrency is not recognized as legal tender in Australia. However, the Australian government does recognize cryptocurrencies as a form of property. The Australian Taxation Office (ATO) considers cryptocurrency an asset, not a currency, and is therefore subject to capital gains tax. The Australian Securities and Investments Commission (ASIC) has released a consumer warning about investing in cryptocurrencies, as they are highly volatile and risky investments. Despite this, some merchants in Australia accept cryptocurrencies as a form of payment.
Crypto taxation laws in Australia
Crypto taxation laws in Australia are relatively straightforward. Cryptocurrencies are considered a form of property in Australia and are subject to income tax and capital gains tax (CGT). Any profits made from trading or selling cryptocurrencies are considered to be taxable income. Additionally, any gains made from investing in cryptocurrency may also be subject to capital gains tax. It is important to note that the taxation of cryptocurrency in Australia depends on the individual’s residency status and activities in the digital asset space.
Australia is one of the most crypto-friendly countries in the world, thanks to a strong regulatory framework and a tech-savvy population. With its progressive stance toward cryptocurrency and blockchain technology, Australia is an ideal place for companies in the space to launch and grow. The government is actively looking for ways to regulate and promote the industry and provide a safe space for digital currency users and businesses to operate in Australia. Australia offers a wide range of cryptocurrency-related services, including exchanges, payment processing, and merchant services, making it an ideal place for DeFi nomads to operate. With a high crypto ownership rate, Australia is a great destination for a DeFi Nomad.
📊 MELD Score
The MELD Score is a rating system that provides guidance to DeFi Nomads to determine the capabilities of their crypto assets in any given country. The rating is based on a scale of 1 to 10, with 1 being the lowest and least crypto-friendly and 10 being the highest and most crypto-friendly. Factors such as crypto adoption rate, support, regulations, and crypto taxation laws are taken into account when arriving at a score.
Australia rates 8.1/10 as a crypto-friendly destination
- This article is for informational purposes only and does not constitute legal or financial advice. The opinions expressed are those of the author and do not necessarily represent the views of the MELD LABS PTE. LTD. or the MELD FOUNDATION. All readers should do their due diligence and consult with a qualified professional when considering cryptocurrency regulations in a given country.
MELD — Be Your Own Bank
We think it’s essential for everyone to gain control of their financial lives and have equal access to financial instruments used by professionals, not just centralized institutions, governments, or the 1%. We want to provide financial freedom and control to the masses, including the unbanked.
We have a long-term goal to enable the $15 trillion that is currently locked out of the global economy, including 2 billion individuals worldwide that are either underbanked or have no access to banking services whatsoever, access these tools. These are the people that are paying the highest fees, and getting the worst customer service, and they are the ones that are having the most problems.
Our vision is to create an ecosystem that empowers individuals to regain financial control by providing them with the tools and services they need to manage their money on their terms. Whether that be creating a collateralized debt position (CDP) with cryptocurrency, earning an interest return for lending fiat to borrowers, or even participating in reward incentive programs, we strive to provide our users with the functions they need to manage their own financial lives.
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