Australia’s Treasure excludes cryptocurrency in proposed limit on cash payments

• The government would like to see the cryptos in Australia stay within the local economy.
• Treasury also acknowledges that cryptocurrency is a marginal contributor to the local economy.

The government of Australia has stood in support of digital currencies and would like to have the assets excluded from the new restrictions to be imposed on cash payments. According to a memorandum sent out by Australia’s Treasury, there will be a ban on cash payments for good and services costing over 10,000 AUD ($6,900).

The proposal, however, has some exclusions that touch on digital currencies. The government would like to see the cryptos in Australia stay within the local economy. This way the Australian government will be supporting within the sector. A section of the memorandum reads:

“Digital currency is a new and developing area in the Australian economy. Unlike physical currency, it does not have a firmly established regulatory framework or industry structure. This makes it difficult to apply the cash payment limit in a way that would not largely prevent the use of digital currency in Australia or significantly stifle innovation in the sector.”

The Treasury also acknowledged that cryptocurrency is a marginal contributor to the local economy. In addition to that, digital currencies contribution to crime is quite negligible.

“At the same time, there is little current evidence that digital currency is presently being used in Australia to facilitate black economy activities. Given this, the Government has decided at the present time to effectively carve digital currency out from the cash payment limit.”