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The State of Bitcoins in Australia

Bitcoin adoption in Australia has been on the rise of late thanks to the government’s change in approach toward cryptocurrencies. Australia’s Bitcoin regulations, such as double taxation, were hampering the adoption of the cryptocurrency but the government has brought about a change in regulations that is now proving to be a catalyst for Bitcoin adoption.

Sydney-based Bitcoin exchange Independent Reserve was getting around 100-200 new users on a daily basis back in 2017 when the favorable regulations came into force, handling as much as AUD$4 million in transactions every day. Bitcoin received another shot in the arm last year when the government of Queensland officially announced that it has invested in a local crypto start-up to boost tourism in the state.

Let’s take a closer look at Australia’s Bitcoin regulatory environment and why it is conducive to the growth of the cryptocurrency.

The Regulatory Environment

Bitcoin exchanges in Australia are under the purview of the Australian Transaction Reports and Analysis Centre (Austrac), the financial intelligence agency down under. Cryptocurrency exchanges in Australia need to register with Austrac and follow the required procedures in a bid to prevent financial terrorism and money laundering.

The exchanges are required to verify the identities of their customers and also maintain certain records for a period of seven years. The Australian Bitcoin community believes that this is a positive development that could bring more people into the cryptocurrency ecosystem, as Bitcoin exchanges in the country now operate under rules that should deliver protection to investors and users alike.

As it turns out, Austrac has officially registered 246 cryptocurrency exchanges across the country since the regulations came into effect in April 2018. At the same time, 11 cryptocurrency trading platforms have been investigated, while two have been declined registrations through January 2019. Austrac is reportedly strict when it comes to willful non-compliance of its regulations, a philosophy that should boost confidence in Bitcoin as buyers will know that the authority will weed out the illegitimate players.

Additionally, a few government agencies in the country have been taking steps that should increase Bitcoin adoption. We already saw that Queensland has made an investment in a crypto start-up, but that’s not an isolated case when it comes to government-sponsored adoption of Bitcoin in Australia.

The country’s post office, a 200-year-old organization, recently took a step that could bring Bitcoin to a massive customer base of more than 11 million Australians. Australia Post launched Digital iD in October last year to facilitate easier purchase of Bitcoin. This is a digital identity service that will allow customers to quickly and easily sign-up with Bitcoin exchanges in Australia, cutting out the verification period that could sometimes take up to days.

In all, Bitcoin faces a favorable environment in Australia and is reportedly one of the leaders in the adoption of this cryptocurrency.

Buying and Spending Bitcoin in Australia

We have already seen that there are hundreds of registered exchanges in Australia from where you can buy Bitcoin. However, one needs to zero in on a cryptocurrency exchange depending on several factors such as fees, convenience, withdrawal limits, verification requirements, anonymity, and payment modes.

You can use our guide that lists the pros and cons of various Bitcoin exchanges in Australia to choose an option that best suits your needs. However, it is advisable to get a wallet before purchasing Bitcoin from one of the exchanges, as that’s the place where you will store the digital currency in case the cryptocurrency exchange doesn’t provide one. You can refer to our guide on the best Bitcoin and cryptocurrency wallets if you don’t have one already.

Another way Australians can buy Bitcoin is through automated teller machines (ATMs). As it turns out, Australia’s Bitcoin ATM count is quite respectable at 54 with presence across major cities such as Sydney, Melbourne, Adelaide, and Brisbane. The advantage of using a Bitcoin ATM is that they provide a quick and easy way of buying the cryptocurrency through cash, and most of them don’t require the buyer to go through a verification process.

However, the downside is that they charge high fees that might range between 5% and 10%. You can easily locate a Bitcoin ATM using our map.

Once you have purchased Bitcoin in Australia, you can use the digital currency to make payments at several vendors that include cafes, bookstores, and fruit and grocery suppliers. Of course, one can use Bitcoin as an investment vehicle or as a means of peer-to-peer payment as well.

In the end, it can be easily said that the future of Bitcoin in Australia looks bright thanks to the government’s moves that are promoting adoption of the cryptocurrency.