Bitcoin Sports Betting Site Under Investigation in Australia

Australian authorities have announced that Bitcoin-based sports betting website, Justbet, is currently the subject of an investigation. The website represented itself as Australian by registering its domain in an Australian Island territory, however, Justbet’s IP address can be traced to Costa Rica.

Also Read:The ‘Crypto-Heater’ Mines Digital Currency While Heating Your Home 

Bitcoin Betting Website Under Investigation for Misrepresenting Location

The Justbet website is registered by the Christmas Island Domain Administration (CIDA). CIDA claims to be a community-owned non-profit company that provides internet services to the citizens of Christmas Island – an Australian external territory.

By using a ‘.cx’ address, Justbet is able to give the impression that it is subject to Australian regulation. The website, however, was registered by a Panamanian, and IP address trace indicates that the company is based in San Jose, Costa Rica. The company does not appear to be sanctioned by any of Australia’s gambling commissions.

The investigation into Justbet has been prompted by calls from Tasmanian minister, Andrew Wilkie. Following Mr. Wilkie reporting Justbet to the Sports Integrity Initiative, the Australian Communications and Media Authority (ACMA) revealed that it had launched an investigation into the company regarding potential breaches of Australia’s Interactive Gambling Act.

Justbet Likely in Violation of Australian Law

An ACMA spokesperson has stated that the Interactive Gambling Act prohibits “unlicensed regulated interactive gambling services, such as online wagering services provided without a license issued by an Australian State or Territory” from being offered in Australia.

The spokesman also stated that “The ACMA has published a register of interactive wagering service providers that are licensed by an Australian state or territory,” adding that “Interactive wagering services that are not included on this register are likely to be provided to Australian customers illegally.”

CIDA had previously indicated that it could not de-register Justbet without a request being made by local authorities,or the lodging of a formal complaint by a member of the public. “The site should be shut down immediately, and the Christmas Island Domain Administration should act straight away to remedy the situation,” Mr. Wilkie said earlier this week.

Do you think that bitcoin gambling will become an increasing target of regulatory action? Share your thoughts in the comments section below!

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Images courtesy of Shutterstock, acma.gov.au

Source : bitcoin.com

Aussie Crypto Traders Expect Tax Crackdown Ahead of New Regulations

With Australia set to introduce new legislation that will empower authorities to monitor and regulate the activities of cryptocurrency traders, many analysts are anticipating that the country’s bitcoin investors will face a crackdown from the the country’s tax office.

Also Read:Australian High School to Host Information Night on Cryptocurrencies 

Australia to Expand Regulatory Domain Over Cryptocurrency Traders

Australia’s new cryptocurrency regulations will see anti-money laundering legislation extended in order to greater encompass the challenges posed by virtual currencies. Analysts are expecting that the Australian Tax Office (ATO) will launch a crackdown on Australian cryptocurrency traders once the new rules are in effect.

Will Day, the ATO deputy commissioner, has stated that the extension of Australia’s anti-money laundering and counter-terrorism financing rules will result in “increased transparency” with regards to the operations of cryptocurrency traders. Cryptocurrency investors will face compulsory 100-point identification checks, with the ATO also planning to mobilize data-matching techniques in order to monitor the operations of traders under the new rules.

“The Anti-Money Laundering Counter-Terrorism Financing Act ensures that there is investor transparency through ‘know your client’ requirements. The increased transparency the law provides, combined with our data-matching techniques and a range of existing powers which address unexplained wealth, strengthen the ATO’s ability to tax cryptocurrency profits.”

ATO to Partner With OECD Anti-Tax-Avoidance Chief

The new legislation will see Australia’s financial intelligence agency, Austrac, extend its information-gathering jurisdiction to virtual currency exchanges. Australian cryptocurrency exchanges will also be mandated to report any cash transactions of over $10,000 AUD ($770 USD approximately).

It has been reported that the chief of the OECD’s global anti-tax-avoidance tax-force, commissioner Chris Jordan, will work closely with the ATO in monitoring the transnational flows of cryptocurrencies. Mr. Jordan will be tasked with discerning whether international virtual currencies may have tax implications, and may seek to foster joint operations involving the tax authorities of other nations.

Time Running Out for Crypto Tax Dodgers

Paul Drum of the National Tax Liaison Group has described the introduction of the new legislation as comprising “a watershed moment for the ATO and Austrac, enabling them to access and thoroughly ­review cryptocurrency exchange account data for the first time.”

Mr. Drum stated that “The effectiveness of the ­anonymity of Bitcoin and other cryptocurrencies is starting to fade. These coming changes mean that people shouldn’t ­assume they can hide forever behind blockchain technology, nor should they ­assume there are no tax consequences,” adding “Many people think of cryptocurrency trading as similar to having a bet at the casino, or backing Winx at the races. But there are usually tax consequences — and the stakes can be very high.”

Do you think that Australia’s tax authorities will launch a crackdown targeting cryptocurrency traders once the new legislation is in effect? Share your thoughts in the comments section below!

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Images courtesy of Shutterstock

Source : news.bitcoin.com