The Australian Taxation Office ruled in August that Bitcoin, which trades uses mathematical code, is a commodity, not a currency and people who transact using Bitcoins will have to pay goods-and-services tax on the Australian dollar value of the transaction. Photo: Jim Urquhart <\/p>\n
The hype around digital currency Bitcoins continues to defy the expectations of investment professionals as another Australian-based exchange opens today, promising to give investors faster trading access than ever before. <\/p>\n
Bitcoin company, Independent Reserve, has launched the country's newest exchange, based in Sydney. It is understood there are now two in Australia. <\/p>\n
Unlike the two main Australian-based stock exchanges, Independent Reserve is not regulated by the Australian Securities and Investments Commission, which means the company has had to take investor protection into their own hands. <\/p>\n
\"Price Waterhouse Coppers are auditing all of our finances,\" said the company's chief executive Adam Tepper. <\/p>\n
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\"We are trying to mitigate risks to ensure people think their money is safe and secure. We have done everything we could possibly do to minimise risk to our clients,\" he said. <\/p>\n
The Australian Taxation Office ruled in August that Bitcoin, which trades uses mathematical code, is a commodity, not a currency and people who transact using Bitcoins will have to pay goods-and-services tax on the Australian dollar value of the transaction. <\/p>\n
Independent Reserve said it will not charge GST on the funds sold through its exchange. <\/p>\n
Wild fluctuations in the price of a Bitcoin - which is currently trading at $US380 and was once as high as $US1000 - as well as heightened level of risk and lack of formal regulation are often cited by professional investors as the reasons why they will not invest in the digital currency. <\/p>\n
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