ATO warning for cryptocurrency investors as Bitcoin hits $164,000: ‘High alert’
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ATO warning for cryptocurrency investors as Bitcoin hits $164,000: ‘High alert’
Koinly CEO Robin Singh said the ATO will have Bitcoin holders in their sights this tax time as values surge. Bitcoin is currently hovering around $164,000, just short of its $175,258 all-time high. Singh noted that spot Bitcoin ETFs recorded $1.37 billion USD in inflows last week alone — around $2.1 billion AUD — marking a straight week of uninterrupted inflows.Australian taxpayers are required to report all cryptocurrency-related capital gains, losses and income in their tax returns. If you’re sitting on realised profits and not declaring it, don’t assume it’ll go unnoticed,” he said.
Australian cryptocurrency investors are being warned to brace for increased scrutiny from the Australian Taxation Office (ATO) as Bitcoin surges in value. Bitcoin is inching towards its all-time high and it’s all happening ahead of the financial year deadline.
Bitcoin is currently hovering around $164,000, just short of its $175,258 all-time high. Koinly CEO Robin Singh told Yahoo Finance he expects it is likely it will break that record in the coming weeks and the ATO will be on “high alert” to ensure investors are doing the right thing.
“Behind the Tax Office are real people, and unless they’ve been living under a rock, they’re well aware that Bitcoin is booming. When Bitcoin rallies, so does ATO scrutiny,” he said.
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“We’ve seen this time and again, crypto is already a top priority for the ATO, and a rising market only sharpens their focus.”
Historically, Bitcoin highs are often followed by profit-taking sell-offs and Singh said this was a “pattern” the ATO knew well.
“That’s why they’ll be on high alert to ensure that Australian crypto investors are properly reporting capital gains. If you’re sitting on realised profits and not declaring it, don’t assume it’ll go unnoticed,” he said.
What is currently happening with Bitcoin?
Bitcoin dipped around 3 per cent on Friday, but Singh noted it had rebounded faster than expected.
“Geopolitical tensions have historically led to higher volatility for Bitcoin. Because BTC didn’t slide too far down this time, I’m even more confident in the overall market sentiment and its chances of reaching new highs before June 30,” he told Yahoo Finance.
“While most of the crypto market was anticipating new highs just days before the conflict broke out last week, I was genuinely gobsmacked that Bitcoin didn’t fall further after the Israel-Iran tension started up again.”
Singh noted that spot Bitcoin ETFs recorded $1.37 billion USD in inflows last week alone — around $2.1 billion AUD — marking a straight week of uninterrupted inflows.
What do taxpayers need to do?
Australian taxpayers are required to report all cryptocurrency-related capital gains, losses and income in their tax returns.
Bitcoin is treated as a capital gains tax asset and when you sell it or exchange it for another currency, you trigger a capital gains event. That means you generate either a capital gain or loss.