Crypto Shocker: Court Declares Bitcoin as Money, Shakes Up Aussie Tax Game

Holy moly, the crypto world just got rocked! A recent court decision has flipped the script, calling crypto assets straight-up money. This bombshell ruling is at odds with the Australian tax office's long-standing view that these digital coins should be treated as capital gains.

Get this: a fed cop was nabbed for allegedly snatching 81.6 BTC back in 2019, and now, Judge Michael O’Connell has thrown a curveball by declaring that Bitcoin (BTC) is money, not some taxable doodad. This drama unfolded on May 19 and has traders buzzing about how crypto should be taxed Down Under.

Yep, you heard it right. The judge is saying Bitcoin vibes more with the Aussie dollar than with wild cards like gold, stocks, or foreign cash.

But wait, the Australian Taxation Office is still playing by their old rules, labeling crypto as property, not cash. Right now, their site still tags crypto under the capital gains tax bucket, covering everything from swaps to DeFi and wrapped tokens. Yet, this ruling might just nudge Bitcoin into the fiat club, possibly dodging that pesky capital gains tax.

As of June 24, they're sticking to their guns, but this new ruling could turn everything upside down.

How Does Crypto Tax Work in Australia?

Listen up, because under the current rules, crypto is seen as an investment, so it gets tossed into the capital gains tax pot. If you're selling, swapping, or even spending your crypto, bam, that's a CGT event.

Now, if you're raking in crypto from mining, staking, or earning, that's different gravy—it's counted as regular income, and you'll be hit with the income tax on your gains.

Here's a little break: if you're just using crypto for personal stuff and it's worth less than AUD 10,000 ($6,503), you're in the clear from CGT. But, go over that, and you're back in the tax zone under the Aussie crypto rules.

Oh, and don't forget, Australia just dropped the hammer on crypto ATMs with a new cash limit of 5,000 Australian dollars ($3,251) for deposits and withdrawals. Plus, ATM operators gotta slap up warnings about fraud risks. It's getting real out there, folks!