Bitcoin trading platform CoinJar has reincorporated in the UK to take advantage of what it sees as a more favourable taxation arrangement.
Company CEO Asher Tan said the move means CoinJar customers will no longer have to pay 10 per cent GST when they buy bitcoin using the exchange.
The UK exempts digital currency trading from value added tax (VAT).
Earlier this year the ATO ruled to levy GST on bitcoin from fiscal 2015, deeming it an intangible asset. The Australian Senate is currently conducting an inquiry into bitcoin and digital currencies.
Tan said the decision to move wasn’t based on the ATO’s recent decision but by avoiding the tax it was a positive for customers.
“We’re excited to be part of the progressive digital currency scene in London, and we know we can play an important role in this market. Our mission here, as it has been in Australia, is to build great products that people love, that make digital finance simple and accessible to all,” he said.
“This is how we believe it should be done. Digital currency is the new face of consumer finance.”
CoinJar is also relocating some staff from its Melbourne office to London where it will be for the time being located at fintech co-working space Level 39 on Canary Wharf.
Tan said he sees London as the world’s tech and finance hub and he hopes basing the company there will help it transform into a global entity.
“CoinJar was born from a disruptive and innovative place, and we are always focused on solving the problems of the future and offering the best solutions,” Tan said. “As we expand to the UK, we believe this will open up more opportunities for our existing Australian customers to use a better global service.”
Since its founding in 2013, CoinJar has processed more than $AU50 million in transactions. It was also responsible for introducing the country’s first bitcoin EFTPOS card.