A recent court ruling in Victoria, Australia, could fundamentally change how Bitcoin—and potentially other cryptocurrencies—are taxed in the country. In a landmark decision during a criminal case involving a former AFP officer who stole 81.6 BTC, the magistrate ruled that Bitcoin should be treated as "cash" rather than property or an asset like shares or gold.

If upheld through appeals, this single classification change would dismantle the current ATO framework that has applied Capital Gains Tax (CGT) to crypto disposals since 2014. Under current ATO rules, selling, gifting, trading, or using cryptocurrency to purchase goods all count as CGT events. But if Bitcoin is legally deemed as cash, these transactions would no longer incur capital gains tax. The decision opens up the possibility of tax refunds dating back to 2019—estimated to total as much as $1 billion. It could also dramatically simplify crypto reporting requirements in Australia. The judgment is based on the idea that exchanging Bitcoin is no different from swapping physical cash (like trading a $20 note for two $10s), which is a non-taxable event.

If upheld, this case sets a legal precedent with the potential to influence not just Australian law but other countries that share similar common law traditions. The episode breaks down key details from the court proceedings, reactions from the tax community (highlighting commentary from @taxinvestaccounting on Instagram), and what this might mean for crypto users and investors in Australia. It’s a space to watch closely, as the ATO is expected to appeal the ruling. If it eventually reaches the High Court of Australia, the outcome could reshape the future of crypto taxation across the country.

This week’s Cardano update covers everything from the Draper U pitch day to major infrastructure changes like Mithril syncing and multi-language node implementations. With over 932M ADA flowing out of exchanges, speculation is growing around a possible price surge. Peter also explores Strike Finance’s liquidity growth, VyFinance’s UI upgrade, and governance changes that could reshape Cardano’s funding structure. Emurgo’s push into real-world assets via Midnight adds another layer to Cardano’s evolving ecosystem.

This episode dives deep into a huge week of Cardano ecosystem updates. Strike Finance expands perpetual futures, Fluid Tokens rolls out Babel fee infrastructure, Flux Point acquires Saturn Swap, and Iagon grows to 26PB of storage. Plus, Liquid’s lending features, Tokyo’s Bitcoin integration, and more. Essential listening for Cardano DeFi followers.