Crypto Traders Warned: ATO Has Access to Your Exchange History

The Australian Tax Office (ATO) has access to data on crypto transactions from exchanges in Australia, and it's not just targeting large investors. Even small trades can trigger a Capital Gains Tax (CGT) event, which means owners of cryptocurrency may owe tax even if they never cash out into AUD.

Matheiu Mingant, who works at crypto tax platform Summ, says the ATO has been collecting this data for years through its data matching program. This means that owners of Ethereum, or any other cryptocurrency, can be matched with their exchange history and tax return. In some cases, even small trades of $20 or more can trigger a CGT event.

Mingant's own partner received a letter from the ATO after buying $20 of Ethereum two years ago, highlighting how many people may not realize they owe tax on their crypto activities. He notes that simply swapping one cryptocurrency for another or using it to buy something can create a taxable event.

For active traders, this can result in thousands of taxable events per year without ever touching a bank account. If owners miss a lodgement, miscalculate, or get the details wrong, they could face penalties between 25% to 75% of the tax shortfall (plus interest), depending on whether the ATO considers it as a failure to take reasonable care, recklessness, or intentional disregard.