Cryptocurrencies do not fall under the restriction of cash payments in Australia

The bill of the Ministry of Finance of Australia proposed restrictions on payments in cash in excess of $ 10,000. At the same time, the limit will not affect payments in cryptocurrencies.

Australian Department of Finance publishes
The new set of guidelines governing cash payments. The bill proposes a “limit of $ 10,000 dollars for payments made or accepted by enterprises for goods and services.”

The draft also stipulates that “transactions equal to or exceeding this amount must be carried out using an electronic payment system or by check.” At the same time, Section 9 of the draft law provides greater clarity with regard to digital payments, as well as the peculiarities of their exemption from the proposed restriction. According to a document issued by the Ministry of Finance:

“Digital currency is a new and emerging trend in the Australian economy. Unlike physical currency, it does not have a well-established regulatory framework or industry structure. This makes it difficult to apply a limit of cash payments in a way that will not significantly hinder the use of digital currency in Australia or significantly suppress innovation in the sector. ”

According to the document, the use of cryptocurrency in Australia to promote a gray economy is not sufficiently confirmed. Given this, the government decided to withdraw cryptocurrencies from the limit for cash payments.

Read This Now: The head of Novatek spoke about plans for Yamal LNG and Arctic LNG 2

This position will remain under constant review to ensure that exemption from payments in digital currency remains relevant in light of the current use of cryptocurrencies in the Australian economy.

The website of the Ministry of Finance states that the bill was “published for public consultation”, and the government plans to introduce a limit on cash payments from January 1, 2020.

In June, the Central Bank of Australia announced that cryptocurrencies are unlikely to become widespread in the near future, while earlier the Australian regulator updated
Guidelines for regulating ICO and cryptoactive assets.