Buying crypto in Australia? Here’s what you need to know
In the 21st century the adoption of cryptocurrency has increased rapidly. Although some nations are already encouraging cryptocurrency to be a legal currency, others are still doing this. In the present, just some nations are still against the technology of the 21st century. The Australian continent has not backed down in seeking out possible ways of promoting cryptocurrency transactions in their countries. While cryptocurrency is yet to be made a legal tender within the Australian continent There is not a law that prohibits citizens from purchasing and selling Cryptocurrency.
We have therefore described in this article, the current laws of the government on Cryptocurrency and how citizens can easily conduct their cryptocurrency transactions, without violating existing laws. Anyone who is looking to learn to buy and sell crypto in Australia will find this guide an invaluable guide to satisfy their needs.
What is Cryptocurrency?
Cryptocurrencies are digital assets which can be used as an alternative source of payment. However, they cannot be legalized in a number of countries. It is a decentralized Blockchain technology that uses encrypted languages to run smart contracts.
Can you buy Cryptocurrency in Australia
One of the crypto-friendly countries is Australia. Although Cryptocurrency is not recognized as a legal currency in Australia however, it is recognized as legal property and can be freely purchased and sold through official exchanges on the continent. Private coins are prohibited by the Australian government. They have no owners and are not subject to rugpull. Thus, it is possible to purchase crypto in Australia without restriction.
Step-by-step instructions for buying Crypto on an exchange in Australia
There are five steps that you must follow to purchase Cryptocurrency from an Australia exchange. We’ve discussed them in the following paragraphs:
Choose your preferred exchange It is necessary to select his favorite exchange among the available regulated crypto exchanges operating in the country.
Register for an account on the exchange: When you’ve chosen an exchange, the next step is to register to open an account. The user is required to provide information such as name, address, email, age, country, phone number, etc.
Upload your identity proofs: Here one needs to upload his government-approved identity card or any other document that identifies the address of the person who is submitting it.
The account must be funded: Following the account has been approved, the next step is to fund it. The next heading will list the different methods of funding an account through most exchanges.
Go to the spot and place your order: The ultimate method after the account has been credited with funds is to move to the spot, where one can place orders for any Cryptocurrency he wishes to purchase.
Options for purchasing cryptocurrencies in Australia
We have already mentioned that the most effective method to purchase cryptocurrency in Australia are the registered crypto-exchanges that are available in Australia. There are a variety of choices available to the trader for buying cryptocurrency from an exchange within Australia. They are listed below:
- Credit cards
- Debit cards,
- Bitcoin ATM
- Local bank transfer
Consider these factors when choosing an exchange to purchase and sell crypto in Australia
There are many instances of crypto traders preferring one crypto exchange to one. This is due to attractive features offered by the exchange. These features are what make the exchange stand out from other exchanges within the region. When selecting a cryptocurrency exchange in Australia These features must be considered. The features discussed in the following paragraphs.
Regulation: All cryptocurrency exchanges that operate in Australia have to register with AUSTRAC The Australian financial regulatory body. It is unlawful for any crypto exchange to operate in Australia without registration with the AUSTRAC body.
The volume of transactions: A key aspect that attracts more traders to a particular exchange is the number of transactions performed on the exchange. A high volume of transactions on an exchange can increase liquidity, which can reduce the possibility of slippage.
Accessibility: All exchanges are expected to provide their users with a simple platform to use, and come with an appropriate user guide for beginners.
Multiple options for withdrawals and deposits: Adding multiple options for withdrawals and deposits allows the withdrawal and deposit process a simple one. It is therefore very important that every crypto exchange diversify their methods for deposit and withdrawals to suit the various options for Australian traders. It is also essential to offer alternatives to deposit or withdraw money in Australian dollar (AUD).
Support for customers A customer support team that is efficient gives traders the confidence that the exchange is concerned about their funds’ security. Therefore, it is essential that a crypto exchange should be able to provide easy ways and channels where traders can communicate their concerns to the company’s management team and have them addressed immediately.
An array of cryptocurrency: This is an important factor that draws more traders to an exchange. The crypto traders have a broad range of preferences over time. To satisfy traders’ needs the best crypto exchange should be able to accommodate new crypto currencies.
Contents for education: Trading on any cryptocurrency listed on an exchange may be made simpler by offering extensive educative content. This can help traders choose which cryptocurrency they would like to buy or sell. To assist traders in making the right choices, all cryptocurrency exchanges should provide a wealth of educational content.
High commissions and trading fees High commissions and trading fees: It is strongly discouraged to make trades on cryptocurrency exchanges that have excessive commissions. A reliable cryptocurrency exchange will have lower fees for all transactions.
Are Crypto trading allowed in Australia?
The trading of cryptocurrency is permitted in Australia. All digital assets such as Bitcoin altcoins, as well as all crypto exchanges, are legal in Australia.
But, all cryptocurrency exchanges operating in Australia are mandated to be registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC). The AUSTRAC is the body that supervises all financial transactions in Australia, and helps to prevent fraud and criminal activity. Any cryptocurrency exchange within Australia which is not registered with AUSTRAC is the subject of serious penalties and criminal charges.
The only cryptocurrency that the government slaps down to protect the interests of its citizens. This is the private coin offering which is an anonymous version of cryptocurrency that is subject to rugpull without any means of identifying its owner. In light of this information, the Australian regulatory body in August of 2020 urged all Crypto exchanges operating within the country to take down the privacy coins they use in their exchanges. Any exchange that fails to adhere to the rules will face penalties from the government.
Which cryptocurrencies are most popular in Australia?
Australian traders are typically the long-term investors in crypto. This is the reason a large number of them choose large-scale Cryptocurrencies which offer excellent stability and allow them to either shorten or long the market. Therefore, the following 10 Cryptocurrencies readily emerge as the most traded today:
- Binance Coin (BNB)
- Ripple (XRP).
- Cardano (ADA)
- Bitcoin Cash
Are Crypto trading tax deductible in Australia?
All earnings earned from Cryptocurrency trading in Australia are considered capital gains and are taxed.
The Australian Taxation Office (ATO) has an established severe punishment for anyone who violates these laws where a penalty of 75% additional charges would be collected as tax for anyone who fails to declare his Capital gains from crypto trading to the appropriate authority for proper deduction of taxes.
Cryptocurrencies are legal in Australia and all transactions that involve crypto currencies are subject to the Anti Money Laundering and Counter-Terrorism Act.
Can Cryptocurrency be a reliable investment?
The risk of high is frequently linked to cryptocurrency investments. It is because there is no way to control the market fluctuations. The only guarantee that citizens can have when they engage with trading in cryptocurrencies in Australia is the fact that all cryptocurrency exchanges operating in Australia are authorized by the government and are required to ensure the security of the funds of investors.