CGT changes spark warnings of extreme risks for young crypto investors

The Australian government's recent changes to capital gains tax (CGT) may have unintended consequences for the country's 6.2 million digital currency investors.

According to industry experts, the new rules may lead to extreme risks being taken by young investors in the cryptocurrency market.

Adrian Przelozny, founder of Independent Reserve, one of Australia's biggest cryptocurrency exchanges, warned that the scrapping of the 50 per cent CGT discount for investments held over 12 months will discourage long-term thinking and encourage people to take on more risk in pursuit of faster returns.

This could have a devastating impact on the long-term prospects of young investors, who may be forced to take on more debt or riskier investments in order to offset the increased tax burden.