Home › Academy › Crypto: technology, trading and risk
Intermediate · Lesson 6 of 6Scams, regulation and Australian tax
Crypto is a favourite tool of scammers: fake investment platforms, romance scams, "pig butchering", pump-and-dumps, fake celebrity endorsements and recovery scams that target victims again. The ACCC's Scamwatch publishes the latest patterns. If returns are guaranteed or you are pressured to act fast, walk away.
In Australia the ATO treats crypto as property for tax. Selling, swapping one coin for another, or spending crypto is a capital gains tax event. Holding for more than 12 months can qualify individuals for the 50% CGT discount. Exchanges share data with the ATO, so keep records of every trade.
Regulation is evolving: Australia has been developing a licensing regime for digital asset platforms, and the US approved spot bitcoin ETFs in January 2024.
Key takeaways
- Guaranteed returns and pressure to act fast = scam.
- ATO: swapping or selling crypto is a CGT event.
- Keep full records; the ATO receives exchange data.
Check your understanding
1. Swapping bitcoin for ether in Australia is...
- Tax free
- A CGT event
- Only taxed if converted to AUD
- GST only
Show the answer
A CGT event. Each disposal, including swaps, is a CGT event.
2. Which is a classic scam warning sign?
- Guaranteed high returns
- Published audited accounts
- Regulatory licence you verified
- Slow, careful onboarding
Show the answer
Guaranteed high returns. No legitimate investment guarantees high returns.
Go deeper
- Wikipedia: Cryptocurrency and crime
- YouTube videos: crypto scams how to spot them
- Investopedia: crypto scams
- ATO: crypto asset investments
- Scamwatch (ACCC): investment scams crypto
Practise this in Vestora
Look up real shares, test ideas with paper trading, and track your progress through the course.
Open the app freeGeneral education only, not financial advice. Examples are illustrations. Rules, tax settings and products change; check official sources.