Australian judge ruling that Bitcoin $BTC is cash:
A Victorian magistrate, Michael O'Connell, ruled that Bitcoin is a form of property similar to Australian dollars, not a taxable asset like gold or shares. This means Bitcoin transactions should be exempt from capital gains tax (CGT).
Basic case details:
- Case: Criminal proceedings against William Wheatley, a former Australian Federal Police officer
- Allegation: Theft of 81.6 Bitcoin in 2019 (worth AUD$492,000 then, now valued at over AUD$13 million)
- Key ruling: Bitcoin is "other intangible property" more akin to money than traditional taxable assets
- Implications: If upheld on appeal, this could invalidate the Australian Taxation Office's approach since 2014, potentially leading to up to AUD$1 billion in tax refunds for Bitcoin transactions made after 2019
- Current status: The ruling has been appealed, with the appeal likely to be heard later in 2025
- Scope: The ruling would only apply to Bitcoin specifically, not other cryptocurrencies
The defense had argued Bitcoin isn't property at all but information, while the magistrate determined it has evolved to be analogous to a form of money.
