Australia Plans Capital Gains Tax Guidance on Crypto Exchanges

Australian tax authorities are preparing guidance on how capital gains taxes are assessed on certain exchanges of cryptocurrency assets using “wrapping” contracts.

The draft taxation determination on the issue is expected to be completed in August, the Australian Taxation Office said on its website Monday.

Wrapping contracts are used to exchange one crypto asset for an equivalent asset in order to ensure compatibility with certain protocols or platforms.

The forthcoming guidance will consider how capital gains tax provisions apply in cases when a crypto asset is sent to a wrapping contract on the basis that the asset has been abandoned, ...