‘Big four’ professional services firm Deloitte has joined the Australian Digital Currency Commerce Association (ADCCA), looking to leverage its expertise for the local industry.
The move is reportedly being led by Deloitte director Taralyn Elliott and partner Jonathan Perkinson, who told iTnews:
“Deloitte has had an interest in digital currencies for quite some time, so this was a great opportunity to get involved. Digital currencies have a lot of momentum at the moment.”
Indeed, this is the third reported development involving the firm and digital currency this month. Deloitte has reportedly been exploring applications of blockchain technology for its clients for 18 months, and has recommended state-sponsored cryptocurrency. These are in addition to several other reports on digital currency in months prior.
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ADCCA looks to define self-regulatory standards for the local digital currency industry, modeled similarly to the Australian Payments Clearing Association (APCA).
Deloitte plans on participating through a working group to define accounting standards, which have yet to be clearly defined for digital currencies. Perkinson said:
“With ADCCA, we’ll be working on the strategic, tax and regulatory changes that will need to happen, and we’ll be recommending and challenging specific changes in those arenas.”
They will also be looking to address the tax treatment of digital currency in the country. Based on 2014 guidelines, bitcoin purchases are levied a sales tax, as bitcoins are classified as property, not currency. They are also liable for capital gains, a treatment found in most other jurisdictions where rules have been defined. Perkinson would like to see “cryptocurrencies taxed in an appropriate way.”
He also noted that it is unlikely that digital currency will disrupt the other ‘big four’- Australia’s major banks. Rather, they will eventually be integrated into and complement the financial system, he said, noting the recent developments of three of the banks getting their feet wet in the sector.