Australia to tax unrealized capital gains, tighten crypto ATM rules
|Australia is on the verge of approving a controversial tax on unrealized capital gains — a measure that could significantly affect high-net-worth individuals. The tax is scheduled to take effect on July 1 and will apply to individuals holding assets worth more than 3 million Australian dollars (2 million U.S. dollars).
According to Coin Edition, the tax will apply to both traditional investments such as stocks and digital assets like Bitcoin during the 2025–2026 fiscal year.
Under the proposal, unrealized gains — that is, increases in asset value on paper — will be taxed at a rate of 15%. Investors will be required to pay the tax even if they haven’t sold the appreciated assets. Analyst Fred Krueger called the policy a “landmark” shift in Australia’s tax law, noting that similar ideas had been proposed before but never enacted.
Financial industry reacts
Top figures in the financial sector have sharply criticized the initiative. Tom Lee, Chief Investment Officer at Fundstrat Capital, called it an “insanely bad idea,” warning that taxing paper gains could undermine investment activity and hurt the economy. Ripple CTO David Schwartz offered a more measured view, suggesting that investors might be able to use their appreciated assets as collateral to secure loans to pay the tax, giving them some breathing room.
As July approaches, debate over the initiative is intensifying. Supporters argue the tax will help fill budget gaps, while critics fear it could harm Australia’s appeal to investors — particularly in volatile sectors like cryptocurrency.
New rules for crypto ATMs amid scam concerns
Amid the new tax initiatives, Australia’s financial intelligence agency AUSTRAC, has introduced stricter requirements for crypto ATM operators. According to Cointelegraph, the new rules include a limit of 5,000 Australian dollars (3,250 U.S. dollars) on cash transactions, enhanced transaction monitoring, and stricter customer verification procedures.
AUSTRAC stated that the measures respond to a rise in crypto ATM-related scams. Over the past year, more than 150 fraud cases have been reported, with total losses exceeding 3.1 million Australian dollars. The agency found that 72% of transaction volume comes from users over 50, many of whom have fallen victim to scams.
AUSTRAC CEO Brendan Thomas said the rules aim to prevent criminal misuse of ATMs and will be adjusted as needed.
These actions demonstrate Australia’s tightening approach to digital finance, from taxing crypto gains to cracking down on fraud.
Previously, the, at increasing transparency, safeguarding consumer rights, and addressing market integrity risks.
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