The Australian government doesn’t have any problems with cryptocurrency investments and believes the asset class will grow in importance over the coming years.
Government considers crypto a good asset class
The cryptocurrency market has gained acceptance from several corporate entities over the past few months. The growth of the market has also seen some governments recognize cryptocurrencies as a strong asset class.
Senator Jane Hume stated that the Australian government doesn’t have any problem with cryptocurrency investment. “We take no issue with consumers investing in cryptocurrencies,” she said. The minister added that cryptocurrency transactions are subject to Australian law, pointing out that the government was alert about tax evasion possibilities.
“But like investment in any asset class, they are subject to Australian law, including our market conduct, know-your-client and tax laws. It is not a free pass,” Hume added. She pointed out that the government has accepted that cryptocurrencies are here to stay and considers them to be an excellent asset class.
Despite her enthusiasm and acceptance of cryptocurrencies, the minister warned investors to be careful of how they invest in the crypto market. She warned that the crypto prices are highly volatile, and investors should be cautious of how they approach them.
Cryptocurrencies have become a strong asset class
Bitcoin and a wide range of other cryptocurrencies have become a strong asset class over the past few years. In recent months, companies such as MicroStrategy, Tesla, Square and several others have added bitcoins to their balance sheet.
According to some experts, cryptocurrencies are a store of value and help hedge wealth against inflation. The Coronavirus pandemic and several other factors contributed to more retail and institutional investors storing their wealth in BTC or other cryptocurrencies.