Australia proposes limits on cash payments, exempting cryptocurrencies

In a recent legislative proposal put forward by the Australian Treasury, authorities suggested limiting cash payments to below $10,000. Interestingly, the proposal does not mention cryptocurrencies in a negative light, indicating that cryptocurrencies would not be affected by this regulation.

The Ministry of Finance further stipulates that "transactions equal to or exceeding this amount need to be conducted using electronic payment systems or by cheque." It also provides a list of special circumstances where payments are exempt from cash payment restrictions:

• Payments related to personal or private transactions involving real estate
• Payments received by public officials in the course of their duties in accordance with the law
• In situations where alternative payment methods cannot be reasonably used
• Business transactions between enterprises

A report points out that cryptocurrency is not listed as a payment method requiring additional supervision or restrictions. Cryptocurrency is typically viewed by governments as synonymous with illegal activities, money laundering, and financing terrorism.

In a previous report by ABM, cryptocurrency was accused by U.S. Treasury Secretary Steven Mnuchin of funding illegal activities, totaling billions of dollars and raising national security concerns.

Australia Believes Cryptocurrency Requires Room for Growth

A document released by the country's Ministry of Finance states:

Cryptocurrency is an emerging area in the Australian economy. Unlike physical currency, it lacks a solid regulatory framework or industry structure. Therefore, in the issue of payment limits, it is difficult to set restrictions on the use of cryptocurrency without stifling the development of financial innovation.

Furthermore, there is currently little evidence to suggest that cryptocurrency is being used to facilitate illegal economic activities in Australia. In light of this, the government has decided to "exempt cryptocurrency" from the issue of cash payment limits.

The Ministry of Finance website indicates that the draft is "publicly open for feedback," and the government plans to implement cash payment limits starting from January 1, 2020. Public input is encouraged to be submitted to the consultation body.

The Australian government maintains an open attitude towards cryptocurrency. In May of this year, the Australian Securities and Investments Commission (ASIC) released the latest regulatory guidance for ICOs and crypto asset companies to uphold the integrity of the Australian financial market and ensure the safety of investor assets.

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