Crypto tax shake-up on cards

AUSTRALIA’S tax rules should be made more friendly for the likes of bitcoin, while digital currency exchanges could face tougher regulation under recommendations handed down by a parliamentary inquiry into the cryptocurrency industry.

The Senate committee has also recommended the government offer businesses that mine cryptocurrency in Australia a company tax discount of 10 per cent if they source their own renewable energy.

The recommendations, tabled to parliament on Wednesday, would lead to higher adoption and sensible regulation of crypto, according to the committee’s chair, Liberal senator Andrew Bragg, who said he would push for the mooted regulations to be adopted as official policy.

The move comes as bitcoin prices have been rallying, nearing all time highs set early this year. The digital currency rose to as much as $US64,309.33 ($85,798) overnight before pulling back.

New figures from Finder show Australia has the thirdhighest rate of crypto adoption in the world, with about 18 per cent of the population owning some form of cryptocurrency including bitcoin.