Australia remains highly engaged in cryptocurrency, with over 31% of its population owning digital assets and a growing network of nearly 1,800 crypto ATMs. Currently, cryptocurrencies are treated as property, resulting in capital gains tax (CGT) when disposed of. Recent legal developments, particularly a May 2025 court case, suggest that Bitcoin could be reclassified as 'Australian currency,' potentially exempting it from CGT. Although this ruling is still under appeal and has not yet shifted the Australian Taxation Office's (ATO) current policies, the implications could be notable, with potential CGT refunds estimated at about 1 billion AUD if upheld. Until then, taxpayers must continue to report crypto transactions according to existing regulations, maintaining accurate records and complying with the ATO’s guidelines. This evolving legal context may prompt significant changes in Australia’s crypto tax framework in the near future.

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