Australia recently introduced a new law that would make any and all cash payments above the $10,000 mark illegal in the country. The amendment was introduced in order to crack down on money laundering and criminal activity within the country. More specifically, it was done in order to prevent the development of the black market that has been plaguing the nation for quite some time now.
The Australian government mentioned that in order to legitimize a transaction above $10,000 a citizen will have to either get a check from the local bank or make the payment through a digital platform so that it can be traced and examined for any fraudulent activities.
Most of the people welcomed the addition as it didn’t affect them directly due to Australia’s already thriving fintech sector and digital economy, but many crypto enthusiasts were worried that prevention of cash payments due to anonymity issues would one day lead to authorities targeting cryptocurrencies as well.
Much to everybody’s surprise, the authorities came out with an announcement saying that cryptocurrencies will be exempt from the new law. The reason stated was that the government doesn’t want cryptocurrencies to simply disappear from the local market, they want the local circulation to increase as much as possible and catch up to the rest of the world in terms of blockchain development.
The motion was supported by the country’s largest industries operating in finance as well as consumer goods and services. One of the main industries in Australia, which is wagering, is starting to heavily rely on cryptocurrency payments in order to provide some kind of liquidity.
A senior sales manager from an Australian wagering website, Daniel Murdock mentioned:
“We’ve been getting more and more transactions through cryptocurrencies like Bitcoin in the recent year, I believe our traction for Bitcoin games has doubled and ever since video poker online in Australia has started to gain a lot more traction due to relieved regulations, we were able to come on top of the charts for letting players wager with their cryptocurrencies. We don’t like to call ourselves a liquidity provider for these assets, but at some point, players enjoy using them, so we might as well provide them with the opportunity to do so”.
According to comments like these from industry experts, it’s obvious to see why the government refrained from including cryptos in the new law. In their vision, regulating crypto transactions is under control and will continue to be so as long as they’re made on regulated Australian entities.
Is crypto cash though?
One main question that arose from the Australian crypto community was why cryptos were referred to as cash, or why they were being boiled in the same pot.
The easiest explanation to this would be that there is not a government sanctioned entity that has direct authority over crypto transactions, therefore these payments are seen as “blind payments” meaning that the government relies on private companies to regulate the market for them.
It’s much like citizens who get their income through cash. It’s up to them to indicate the amount in their tax reports, therefore being referred to as blind payments.
Better crypto adoption?
This is yet another hint from the Australian government that they’re “bullish” on cryptocurrencies and want their citizens to increase their purchasing power through this new source of income.
As long as taxes are maintained on a manageable level, Australia has the potential to become a major crypto hub in the future, especially after being branded as the priority refuge for companies operating in Hong Kong and Macau.
Giorgi is a news reporter and financial analyst at www.forexnewsnow.com He has 3 years of experience in analyzing the financial markets of Forex and cryptocurrencies. He also likes making hidden jokes in his articles.