Australian Exchanges Join a Crypto Tax Firm

Colin Baseman

Being a taxpayer is not the most enjoyable part of any individual’s existence. People are obliged to perform this part of their daily duties on a regular basis – this is how our society keeps alive and functioning.

We fully realize that there are individuals who will always try to do their best to avoid paying taxes and this is why we have regulations, organizations, and authorities that keep track of people’s activities, incomes, and expenses. Recent reports announce that three exchanges based in Australia have finally established a partnership with a crypto tax company.

Swyftx’s representatives are happy to note that this is an important change in their firm. Also, Cointree is an exchange that has joined the project and is now part of it. Finally, there is Coinjar that will be responsible for tracking its customers’ tax obligations.

Crypto market analysts have known Koinly for quite some time. This company is not new to the crypto community – it is a software provider aimed at crypto taxation. This is actually the company that the three mentioned Australian crypto exchanges have partnered with.

At present, all digital asset exchanges are looking for more convenient ways to simplify their customers’ tax reporting. The exchanges noted that they are willing to fully support the provider. What they all do will let thousands of clients to automatically present trading information to the provider through API or csv.

Additionally, they will have access to capital gains data. All parties admit that there is enough guidance around crypto taxes. Calculating taxes is rather a challenging task and if it is done by hand, it is even more difficult. This is especially important to remember while trading on several exchanges at a time.

Regulators Boost Security Measures

It’s wise of the authorities to increase scrutiny. Officials need to be precise and exact when performing calculations and control. As many news outlets claim, the ATO sent messages to almost three hundred and fifty thousand Australian citizens who they think are involved in trading cryptocurrencies.

Their main idea was to remind those individuals that they have to remember about their tax obligations four months ago. The organization found out that approximately one million people deal with the crypto sphere and that is about four percent of the whole nation. Koinly is now discussing several major matters with the three exchanges after they had heard of the sent letters.

Each of the exchange admits that the number of users on their platforms has increased. There are a lot of clients who are eager to learn more about limitations and conditions. Newly formed partnerships will help the parties collaborate and resolve some of the most common issues. Regular crypto investors will be able to avoid possible barriers and misunderstandings. Many users might feel scared of being trapped in a tax hell hence officials will do their best to make rules clearer.

As a matter of fact, there are a lot of individuals who do not even know that crypto trading involves tax obligations. A few months ago, the officerequired crypto exchanged to present the most essential information with governmental institutions and agencies. All they receive then is fed into the tax office’s protocol – documents help authorities identify sellers and buyers of crypto assets. They will instantly see if there are people who do not meet their reporting conditions.