Can the ATO Track Crypto?
Can the ATO track crypto, and if so, how much do they know about your crypto investments? Our guide covers everything you need to know about the ATO's data-sharing program with crypto exchanges, and which crypto exchanges are reporting to the ATO.
Can the ATO track crypto?
Yes, the ATO knows about your crypto. It has an extensive data-sharing program with crypto exchanges operating in Australia.
In May 2024, the ATO announced it had requested personal and transaction details on 1.2 million Australian cryptocurrency users from crypto exchanges to recover unpaid taxes. Your data is likely already on file with the ATO if youâve got an account with an Australian cryptocurrency designated service provider (DSP).
Australiaâs tax office has been tracking crypto in earnest since 2019, when it introduced a data-matching program focused on cryptocurrency transactions. The program allows the ATO to access data held by designated service providers, which includes crypto exchanges like Binance, CoinSpot, CoinJar, and more.
The collected data is used to identify the buyers and sellers of crypto and to quantify the related transactions. The ATO can then compare this data from DSPs with its own tax return records in order to spot individuals who are failing to report crypto investments accurately.
Read next: How to avoid tax on crypto in Australia (legally!)
Which exchanges report to the ATO?
Any crypto exchange legally operating in Australia shares data with the ATO.
Since 2018, all DSPs must meet Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) obligations, including:
Maintaining strict KYC policies
Adopting and maintaining an AML/CTF program to identify, mitigate, and manage money laundering and terrorism financing risks
Identifying and verifying the identities of their customers
Reporting to AUSTRAC suspicious matters and transactions involving physical currency of $10,000 or more
Keeping certain records for seven years
You can learn more about which exchanges report to the ATO and what they report in our guides:
Which exchanges are AUSTRAC registered?
Exchanges need to be registered with AUSTRAC to operate in Australia, and it is a requirement that they share KYC data with the ATO to ensure tax compliance. Registered crypto exchanges include, among many others:
What does the ATO know about your crypto?
Designated service providers are bound by law to provide the ATO with the requested information. That means the ATO has the âknow your customerâ (KYC) information you provided when signing up for any Australian exchange or wallet. This includes personal information and transaction data like:
Names
Addresses
Phone numbers
Bank account details
Transaction dates
Asset types
Transaction values
How far back can the ATO track crypto trades?
The ATO knows who has crypto transaction data from as far back as 2014. Under the data-matching program, the ATO has collected data on cryptocurrency transactions for the 2014-15 to 2019-20 financial years.
What's the ATO crypto letter?
Following the data matching exercise, crypto investors may be contacted by the ATO and given the opportunity to verify the information collected before any compliance action is undertaken. The ATO states that people will be given at least 28 days to clarify any information that has been obtained from the data provider.
Read Next: Received a letter from the ATO? Do this now.
Do you have to declare cryptocurrency in Australia?
Yes, in Australia, crypto can be taxed as both capital gains tax and income tax. Fortunately, ATO crypto taxes are pretty simple with the right tools. Using an ATO-compliant crypto tax calculator like Koinly can help keep you on the right side of the law. Learn more in our crypto taxes Australia guide.
What happens if I don't report my crypto the the ATO?
Where people find that they have made an error or omission in their tax return, they are advised to contact the ATO as soon as possible. Penalties may be significantly reduced in circumstances where the ATO is contacted before an audit.
If investors make a mistake, they can request a self-amendment or make a voluntary disclosure, and if they need assistance paying their taxes, they can contact the ATO.
Learn more in our guide on crypto tax evasion in Australia.
Koinly can help...
Koinly can help you manage your ATO crypto tax obligations easily by automatically calculating your gains, losses, income, and more across 900+ exchanges. Best of all, it's completely free to try.