The ATO wants to talk to us about crypto currencies

If regulation is what we want, our prayers have been answered. The Australia Taxation Office is inviting tax payers to submit feedback on how to manage taxation for crypto currency assets. Ever since the popularity of crypto investments sky rocketed last year, tax payers have been screaming for a way to get regulated. Seasoned investors wanted more government control, insurance and more scrutiny. In essence, we wanted a centralised authority to overlook and secure our investments and manage our fears.

Here are some of my thoughts on what it means to have government intervention :

The pros

1. Government regulation can encourage insurance companies to step in at some stage and cover you against cyber theft of your assets. I'm sure they won't cover you against losses. This will give a major boost to professional investors to step in making sure there's less volatility in the crypto market.

2. Thefts can be reported to agencies like Australian Cybercrime Online Reporting Network;

3. More informed journalism and reporting on crypto projects in mainstream media.
   The moment government regulates this space, there will be hundreds of pundits jumping in to give their valuable inputs on the market, various projects. Overall there will be more debate and dialogue.

4. mainstream banks can offer wallets with more security and better customer service;

5. Courts, family law and other areas of our lives will adapt to the new economy framing policies around crypto assets.

6. Most important: Mass adaption of crypto currencies in our day-to-day business dealings. There can be a time when local and federal government agencies will accept payments in crypto currencies. It's already happening overseas in Japan and the US;

Cons:

1. More centralisation, government scrutiny; This itself defeat the whole purpose of having a decentralised currency;

2. Banks will intervene and try and profit from the scenario. They will issues their own currencies or back coins like Ripple. More middle class will rely on coins that are issued or backed by banks.

Regardless, I think we should contribute to this dialogue with the central authority. The last date of submission is April 20th. If you have a spare moment, please submit the form below to the ATO:

https://lets-talk.ato.gov.au/PAG/survey_tools/CryptoFb