Finally! Australia cancels Bitcoin tax

It’s no secret that Australia and Bitcoin have had a troubled marriage, as there has been friction surrounding whether to tax Bitcoin. Australian officials have historically imposed a general goods and services tax (GST) on Bitcoin, forcing many businesses and startups to rethink their position in the country. However, new Treasurer Scott Morrison has made a departure from his predecessor, announcing that Bitcoin and digital currencies will no longer be subject to GST and that legal restrictions will be relaxed.

Australia is one of the few countries that imposes taxes on Bitcoin. This policy has been met with dissatisfaction from many digital currency industry experts, who believe that this will hinder the development of financial innovation in the country.

If Australia wants to become a country that can drive the world's financial technology innovation, then Australia must make changes. Undeniably, Bitcoin and digital currencies are the purest form of financial technology innovation at present, because they can bring complete financial solutions and do not rely on existing banking infrastructure.

Treasurer Scott Morrison sees value in removing GST on Bitcoin and relaxing crowdfunding restrictions. On the other hand, it will also reduce the tax burden on venture capitalists. New regulations for financial technology startups will be established in the coming months. Taking this "grow first, then regulate" approach will create a more relaxed ecosystem for startups and entrepreneurs.

Australian Treasurer Scott Morrison

Simon Cant, CEO of FinTech Australia, said:

“We know we have a long way to go to be a world leader, but we are excited to work with regulators to monitor the evolution of financial technology and ensure it can create new products for consumers, and we are excited to see venture capitalists turning to financial technology and investing freely without being constrained by tax laws.”

While the news of the removal of GST on Bitcoin is good news for digital currency enthusiasts, the details of its implementation have yet to be determined. However, there seem to be signs that government officials are discussing with industry experts how to amend the law. Keep in mind that this process takes time and the final result will not be so quick.

We all know that financial technology will play an important role in the future development of finance, and Australia does not want to lag behind other countries in this competition. In addition, equity crowdfunding can also play a significant role in the financial technology industry. Currently, the Australian Parliament is reviewing various legal proposals that can relax restrictions.

Original article: http://www.newsbtc.com/2016/03/21/australian-fintech-push-leads-bitcoin-gst-removal/
By JP Buntinx
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/australian-remove-bitcoin-gst)