The advent of cryptocurrencies solved the problem of moving value almost instantly around the world but also created a caveat that global regulators face a hard time wrapping their heads around.
The anonymous nature of cryptocurrency transactions as well the possibility of further hiding funds using mixing services, make the invention an easy way for tax evaders to carry out their illegal activities.
But regulators will not give up without a fight.
According to a Thursday report by the Australian news outlet, SMH, a group of tax regulators from Australia, the United States, the U.K., the Netherlands, and Canada reported progress in the war against individuals and organizations using cryptocurrency to evade taxes.
The J5 as the group prefers to identify itself even reported that one of the cases involves “a global financial institution” and its intermediaries who allegedly helped tax evaders to hide details about their income and assets.
Will Day, the Deputy Commissioner of the Australian Taxation Office (ATO) which is reportedly involved in the investigation of 12 of the tax avoidance cases, suggested that individuals in Australia are not innocent concerning the offenses.
SMH quotes, the top official as saying,
"At no other time have criminals been at greater risk of being caught. In Australia, they are often intermediaries who are playing a role between the tax evader and an offshore entity."
On the level of progress achieved by the J5 to date, the report mentions the recent shutdown of a cryptocurrency mixing service, Bestmixer.io. Information gathered from that operation will now serve as a lead for the J5 to continue its effort to clamp down crypto tax avoidance.
Meanwhile, Australia’s effort to hunt down those who abuse the use of cryptocurrencies does not mean that the country has a negative stance toward the invention. Last week, Stmarket.co reported that Australia updated its guidelines for ICOs and crypto firms.