Australia seeks to impose restrictions on cash payments, leaves out cryptocurrencies

The Department of Treasury in Australia has put forth draft legislation that applies restrictions on cash payments. 

Possibly for the first time, cash payments have taken a backseat to cryptocurrencies. The element of surprise is that the cryptocurrencies are exempted from the limits.

The Australian Department of Treasury has established a fresh set of guidelines that govern the cash payment limits. According to the guidelines, no cash transactions must amount to more than ten thousand dollars ($10,000) when trading goods or services.

The draft bill further specifies that transactions exceeding this amount must be carried out electronically or via cheque.

The suggested move is made as an attempt towards resisting the snowballing of the black money market and shunning taxes in the country.

Cryptocurrencies are given relief

Oddly enough, cryptocurrency transactions find a place in the exceptions list. The proposal stipulates a list of circumstances under which the payment limit does not hold.

    • Any private transactions, excluding real estate.
    • Payments to/from government officials who are legally obligated to make cash transactions
    • Payments are taken in the form of in-transit cash services.
    • Payments constituting digital currencies
    • Lastly, cash transactions taking place due to the absence of alternative modes of payment.

The trust in the digital currencies market evolves from the fact that the country’s cryptocurrency exchange platforms have done everything possible to ensure they comply with the regulatory framework

Not only that, the exchange services diligently administer their anti-money-laundering (AML) and know-your-customer (KYC) procedures.

Cryptocurrencies foster innovation in Australia

Meanwhile, the Treasury Department throws more light on digital currency payments. According to the official document released, cryptocurrencies contribute to the economy’s strengthening. Having been independent of the regulatory structure, it not only makes it impracticable to impose limits but also smothers technological advancements.

Besides, the document clarifies that there is little to no evidence against digital currencies’ involvement in illicit operations. With that said, cryptocurrency transactions will be scrutinized thoroughly to corroborate that there is no jeopardizing the safety of its people.

The Department of Treasury further concluded the draft proposal stating that it is open to public review and consultation. Any changes or feedback must be proposed on or before Aug 12, 2019, after which, the cash limit implementation be enforced from Jan 2020.

While several governments associate cryptocurrencies with money laundering and illegitimate activities, Australia concocts an exemplary example for demonstrating conviction in cryptocurrencies.