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Hello the ATO community, a question about the cryptocurrency trading business.
Currently, I am a sole trader, all crypto is being traded under my name.
Due to the growth of the business, I am thinking about setting up a company and transferring to it all crypto assets, so the company could continue this trading business.
The trading process is mostly automated, which took a while for the software developer and myself to work that out. Income is earned, in particular, by selling crypto on a more expensive platform and buying it on a cheaper platform (exchange). The prices are constantly fluctuating, so you can imagine that it is hundreds of transactions on a daily basis. There could be tens of several crypto coins on one platform being traded. Every coin has its unique address - a combination made up of 26-35 alphanumeric characters. Therefore, transferring the trading process to a company is a significant work (up to three months), which includes a total reconfiguration of the trading transactions.
As I cannot stop trading, I think that it is possible to sign a brokerage agreement between myself as an individual and the company that I will be trading the company's crypto under my name, but for the benefit of the company, during this transition.
Based on that, the question is: on what basis the ATO could be satisfied that the crypto belongs to the company, and income earned also is reported by the company? What paperwork should be done to substantiate that?
Thank you.
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5 replies
Hi @Anatoliy,
What an amazing industry you're working in.
Cryptocurrency is trading stock. You'll need to transfer it to the company.
We have great information on our website about record keeping for cryptocurrency.
If you need specific information you might to consider contacting our early engagement team.
All replies
Hi @Anatoliy,
What an amazing industry you're working in.
Cryptocurrency is trading stock. You'll need to transfer it to the company.
We have great information on our website about record keeping for cryptocurrency.
If you need specific information you might to consider contacting our early engagement team.
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