It seems that Australia has made the mistake of effectively double taxing Bitcoin by classifying it as an asset instead of a currency. This will cause a migration of Bitcoin companies and services to leave the area and migrate to greener pastures. It is already documented that Coinjar , the main Australian Bitcoin exchange shall relocate their main operations to the UK in London’s financial district.
[pullquote]Bitcoin is considered an asset, not a currency. As a result, it’s effectively “double-taxed”. Bitcoiners in Australia need to pay a 10% tax when acquiring Bitcoin, and another 10% tax when they actually use it. (Source – thecoinfront.com)[/pullquote]
As mentioned in a previous post, the UK needs to keep a light handed approach to Bitcoin for it to flourish.
It is exactly this view that will hamper Bitcoin and its benefits in any country that chooses this short sited action. Thankfully, we in the UK have a more open minded and business friendly view of Bitcoin and that is exactly why Coinjar have chosen London as their new base of operations.