Cryptocurrency has enjoyed significant publicity recently. What started as a seemingly outlandish idea has exploded over the last year, with bitcoin reaching up to $80,000 in value.

However, the developments of bitcoin have not escaped the attention of the Australian Tax Office. Buyers and sellers need to be aware that these investments attract tax obligations. The ATO has sophisticated technology to track transactions and to identify people who have not recorded a capital gain or loss in their tax returns.

The cryptocurrency data-matching program launched in 2019 will examine transactions and account information from service providers for a further three financial years to 2022/23. It will track buyers and sellers, including identifying details like names, addresses and bank details.