Is Ether (ETH) cryptocurrency available in Australia?

Highlights

• Ether or ETH is a token used as a mode of payment within the blockchain ecosystem of Ethereum
• The central bank of Australia’s white paper on its CBDC project suggests that Ethereum’s blockchain could be used as a platform
• ETH tokens can be traded on exchanges. However, the year 2022 has shown that such trades could be very risky

Ethereum’s Ether (ETH) token competes with Bitcoin (BTC) for the top market value in the cryptocurrency world. By another measure, and because ETH is an altcoin, it competes with the likes of Solana (SOL) and Cardano (ADA). It is said that while BTC wants to substitute regulated currencies like the Australian dollar, ETH’s present aspirations are to be a viable medium of exchange within Ethereum’s blockchain.

The same blockchain found a mention in the CBDC white paper of the Reserve Bank of Australia (RBA). Yes, the eAUD, which would be Australia’s pilot central bank digital currency, can probably use Ethereum’s private blockchain network to record transactions. This makes both Ethereum and the token ETH interesting. Let us explore more details.

Is ETH available in Australia?

First, trading in cryptocurrencies like BTC, ETH, or SOL is not unlawful in the country. Some countries, like China, have banned all crypto-related activities. Australia, on the other hand, has so far adopted a tolerant approach. This means that ETH can be traded as a speculative asset, and the ATO mandates a levy of capital gain tax (CGT) on any profit accruing from such transactions. Interestingly, the ATO considers all blockchain-based tradable assets, including NFTs, as belonging to one category termed ‘crypto assets’.

That said, ETH tokens are available on dedicated exchanges like Bybit and Binance. Additionally, some cryptocurrency ETFs also allow indirect exposure to tokens like BTC and ETH. At the same time, it is important to note that availability and legality do not mean that cryptocurrency trading, considering losses sustained by BTC and ETH this year, is without risks. In fact, risks are quite high taking into account recent failures of some popular cryptocurrency-related companies like FTX and Celsius Network.

Data provided by CoinMarketCap.com

Ethereum and Australia

There are two developments to note in this regard. First, the Australian Securities Exchange (ASX) recently announced that it was dropping its plan to use blockchain tech in the settlement of trades. On the other hand, the September 2022 white paper of the RBA states the CBDC of the country could use blockchain, particularly Ethereum’s network. It can be said that the adoption of blockchain is currently in its experimental phase.

Bottom line

It is not unlawful to buy and sell ETH tokens in Australia. The condition is that the trader has to diligently report income on any such transaction and pay CGT. Second, ETH is available for purchase via exchanges, however, the asset remains a very risky asset. It is not clear whether the eventual CBDC of Australia would be based on Ethereum’s blockchain or not, but any progress in this regard would be closely watched by ETH enthusiasts.

Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.