At this time, it's likely that Uphold reports user information directly to the Australian government. The ATO has been known to request information about users from platforms such as Uphold to crack down on tax evasion.
Since 2019, the ATO has used data matching to crack down on crypto tax fraud. The ATO uses information provided by exchanges and wallets to track crypto transactions and identify individuals who have not met their tax obligations.
In the past, the ATO has used this information to send warning letters to hundreds of thousands of cryptocurrency investors.
Yes. In Australia, your transactions on Uphold or other platforms are subject to capital gains tax and ordinary income tax. Even if your exchange doesn't report to the ATO, you are still responsible for reporting related income from platforms like Uphold.
If you’ve earned or disposed (ex. Sold or traded away cryptocurrency) during the year, you’ll have a tax liability to report to the ATO.
For more information, check out our complete Australia guide to cryptocurrency taxes.
Yes. Uphold operates legally in Australia.
Remember, there is no way to legally evade your taxes in Australia. However, there are tools like tax-loss selling and cryptocurrency tax software that can help you save thousands of dollars legally.