Australian Draft Bill Excludes Virtual Currency From New Cash Payment Constraint

Australia’s administration has sent supporting statements on cryptocurrency since it seems to rule out the sector from new constraints on cash payments. 

In an explanatory memorandum released late last week, the country’s Treasury stated it would like to ban cash payments for goods and services which went beyond 10, 000 AUD ( $ 6, 900). 

However, several exemptions would apply, which includes trading decisions involving what it really describes as digital currencies. 

The reason, lawmakers state, is in order to avoid the disappearance of such currencies from the local economy, which often would lead to a block on the freedom to innovate. The memorandum reads : 

“Digital currency is a new and developing area in the Australian economy. Unlike physical currency, it does not have a strongly established regulatory framework or industry structure. This will make it difficult to apply the cash payment limit in such a way that would not largely prevent the consumption of digital currency in Australia or considerably stifle innovation in the sector .” 

As Cointelegraph reported, Australia retains a mixed track record on cryptocurrency. This year, it emerged authorities would go after individual traders for tax requirements, demanding access to user data from exchanges. 

Continuing, the Treasury proposed that cryptocurrency continues to be a marginal contributor to the overall economy, and blown out when compared with recent comments from other authorities by stating its role in the crime is also negligible. 

The memorandum ensures: “At the same time, there exists little existing evidence that digital currency is currently getting used in Australia to aid black economy activities. Given this, the Government has decided at the present time to efficiently carve digital currency out from the cash payment limit .” 

If approved, Australia would implement the $ 10,000 limit starting January 1, 2020. Earlier this month, it evolved that Germany was also trying to lower the maximum amount legal to accept in cash from €10, 000 ($ 11,120) to €2,000 ($ 2,220) from January 10 next year. 

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