Australia Exempts Cryptocurrenies From Cash Payment Limit Proposal

Neil Dennis

Australia's treasury department has carved out new guidelines limiting the size of cash-based currency payments, but cryptocurrencies have been excluded from the draft legislation.

To help combat tax evasion, the government department proposes a "limit of $10,000 for payments made or accepted by businesses for goods and services".

Under the proposed legislation, transactions that are equal to, or in excess of this amount would need to be made using electronic payment systems or by cheque.

Exceptions List

The proposal provided a list of exceptions, however, that would exempt payments to this limit. Among these was "payments that only exceed the cash payment limit because payment is or includes an amount of digital currency".

The treasury department explained that given the cryptoasset sector was a "new and developing" area of the Australian economy, digital assets - unlike physical currency - do not have a "firmly established regulatory framework or industry structure". 

This makes it difficult to apply the cash payment limit in a way that would not largely prevent the use of digital currency in Australia or significantly stifle innovation in the sector.

Black Economy Activities

Taking something of a departure from the concerns of global regulators regarding the use of cryptocurrencies for money laundering or other criminal activities, the proposal said:

At the same time, there is little current evidence that digital currency is presently being used in Australia to facilitate black economy activities. Given this, the Government has decided at the present time to effectively carve digital currency out from the cash payment limit.

This light-touch position on cryptoassets will remain under ongoing scrutiny, the treasury department said. This would ensure that the "exemption for digital currency payments remains appropriate in light of the current use of digital currency in the Australian economy".

The department added that the draft proposal was released for public consultation and that it was planning to implement the cash payment limit starting on January 1 next year.

JPMorgan Chase Positively Wades Into Crypto After Years of Hate

Colin Muller
  • JPMorgan is now servicing Gemini and Coinbase
  • The move represents a full reversal of JPM's stance
  • Crypto is now deeply institutionalized

The financial services giant and bank JPMorgan Chase & Co have seemingly reversed on a long-held stance, that crypto is bad, by beginning to service U.S. cryptoasset exchanges Gemini and Coinbase.

JPMorgan’s apparent reversal comes after years of institutionalized disdain for crypto, with the bank’s CEO Jamie Dimon being a vociferous critic circa 2017. According to Bloomberg, JPMorgan had been conducting due diligence on the exchanges “for months” before making the move. The bank’s adoption of crypto signals what can only be a highly regulated crypto-fiat landscape.

During 2019, JPMorgan had in fact started to visibly thaw on the subject of crypto, even experimenting with their own distributed ledger tech in the form of the so-called “JPM Coin”.

Dimon displayed during an interview his awareness of the competition posed by crypto, directing his people to assume that crypto and/or Fintech was “coming [...] to eat your lunch.” Despite this, he was bearish on the prospect of Facebook’s Libra project succeeding or even launching, saying in October 2019 that it would “never happen”.

big dropJPM chart by TradingView

JPMorgan’s publically traded stock has fallen recently, retreating from all-time-highs set in December 2019 in February, even before the coronavirus pandemic started to wreck the markets in March. It is down about 37% from those highs, trading now at about $87.

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