Cryptact, a leading crypto tax platform in Japan, has chosen Australia as its partner for its first major overseas expansion. The decision is driven by the country’s high crypto adoption rate, clear regulatory frameworks, and a rapidly maturing digital asset ecosystem. The firm has been active in Japan since 2017 and has served over 200,000 users to date. Its expansion to Australia is a welcoming move as far as Australian crypto investors are concerned.
More About Cryptact
Cryptact is a leading global crypto tax and portfolio management platform that simplifies the tracking and reporting of cryptocurrency investments. Founded by former Goldman Sachs executives, it provides automatic transaction tracking, capital gains calculations, and tax report generation that are tailored to the strict crypto tax regulations.
Here are the key features of Cryptact.
- Extensive Exchange and Wallet Support: Cryptact connects its users with various prominent exchanges and wallets, such as WazirX, CoinDCX, CoinSwitch, Zebpay, Binance, and Coinbase, via API or CSV file uploads.
- DeFi & NFT Coverage: Cryptact automatically tracks transactions across decentralized finance (DeFi) platforms and non-fungible tokens (NFTs) just by pasting your wallet address on their platform.
- Localized Tax Calculations: Cryptact has the facility for users to calculate the crypto taxes as per the regulations of their country or state.
- Investment Simulation: Cryptact allows you to test different trading or selling strategies before executing them to understand their tax implications.
In terms of joining Cryptact, the platform offers an initial free trial period, after which you can continue on the platform with the payment of a nominal fee.
Factors Driving Cryptact’s Expansion to Australia
The key factors that have made Cryptact choose Australia for its overseas expansion are given below.
- Maturing Regulatory Clarity: Australia’s proactive approach to regulating the digital asset industry, specifically through the Digital Assets Framework Bill, has created a secure environment for major overseas platforms to start functioning in the country. The regulatory environment of the country aligns with Cryptact’s focus on transparency and institutional-grade compliance.
- Thriving Investor Market: A significant percentage of Australians hold cryptocurrencies. Crypto adoption is especially high among the younger demographics in Australia. This established investor base generates a strong demand for sophisticated tax calculation and portfolio tracking tools in the country. The country makes a viable market for a platform like Cryptact.
- Institutional Alignment: Major global crypto entities like Coinbase are actively securing licenses and expanding their retail and derivatives offerings in Australia. As the market becomes more professionalized, the need for robust, audit-proof tax reporting tools for both retail and institutional traders also grows. This explains the relevance of a firm like Cryptact in Australia.
- AI and Innovation Readiness: Cryptact has heavily invested in AI and other new-generation technologies. Cryptact’s Co-CEOs Amin Azmoudeh and Gaku Saito have highlighted that with artificial intelligence taking on the tedious groundwork of transaction categorization, crypto tax reporting can become much more approachable and efficient for the Australian public with Cryptact.
How is Crypto Taxed in Australia?
If you are an Australian interested in investing in cryptocurrencies, you should have an idea about how cryptocurrencies are taxed in the country. This is especially necessary given the context of Cryptact, a crypto tax platform, launching its operations in the country.
The Australian Taxation Office (ATO) classifies cryptocurrency as property rather than legal tender. This means your crypto transactions are typically subject to Capital Gains Tax (CGT) when you dispose of assets, or ordinary Income Tax if you earn crypto as income. CGT is triggered whenever you sell crypto for fiat, swap one cryptocurrency for another, gift it, or use it to purchase goods and services. You calculate your gain or loss by comparing the asset’s value in AUD at the time of disposal against what you originally paid for it.
If you earn crypto through activities like mining, yield farming, or airdrops, it is treated as ordinary income. In this case, you have to pay income tax. You must declare the Fair Market Value of your transactions in AUD on the day you receive them as part of your taxable income. It is important to note that you may be exempt from CGT if you acquire and use cryptocurrency strictly to buy items for personal use or consumption. This generally applies only to small amounts.
The Bottom Line
The news that Japan’s leading crypto taxation platform, Cryptact, has chosen Australia as the destination for its first major overseas expansion is encouraging for the crypto industry in the country. Australia is known to have a conducive environment for crypto trading, and this development has reinforced this general notion. The Australian government, as well as the crypto enthusiasts there, is hopeful that several other companies will follow Cryptact’s path and open their offices in Australia. Such a development would reshape the country’s future in the decentralized finance sector.