Australian bill excludes digital currency from new cash payment limit

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The Australian government has made statements of support for the cryptocurrency as it seeks to exclude the sector from new restrictions on cash payments.

In an explanatory memorandum released late last week, the country’s treasury said it wanted to ban cash payments for goods and services exceeding AUD 10,000 ($6,900).

However, a number of exclusions would apply, including transactions involving what he describes as digital currencies.

The reason, according to the lawmakers, is to prevent the disappearance of these currencies from the local economy, which would in turn lead to a blockage of the freedom to innovate. The memorandum reads as follows:

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

As Cointelegraph reported, Australia holds a mixed record when it comes to cryptocurrency. This year, it emerged authorities would crack down on individual traders for tax purposes, demanding access to exchange user data.

Continuing, the Treasury suggested that cryptocurrency remains a marginal contributor to the economy, and struck off recent comments from other governments by saying its role in crime is also negligible.

The memorandum confirms:

“At the same time, there is little current evidence that digital currency is currently being used in Australia to facilitate shadow economy activities. In view of this, the government has decided at this time to effectively withdraw the currency numeric of cash payment limit.

If approved, Australia would implement the $10,000 limit from January 1, 2020. Earlier this month it emerged that Germany was also looking to lower the legal maximum amount to be accepted in cash from €10,000 ($11,120) to €2,000 ($2,220) starting in January. 10 next year.

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