The Australian government is planning high-tech checks to chase tax from bitcoin investors.

News Corp reports say data-matching and identification checks will be among the measure introduced to ensure that cryptocurrency investors are meeting their tax liabilities.

The ATO will reportedly use bilateral tax treaties and anti-money laundering powers to boost transparency in the crypto market.

But it will be challenging in an investment world that values the anonymity provided by the underlying blockchain technology.

The plans are praised as a “watershed moment for the ATO” by National Tax Liaison Group member Paul Drum, said they would enable authorities “to access and thoroughly ­review cryptocurrency exchange account data for the first time”.

“The effectiveness of the ­anonymity of Bitcoin and other cryptocurrencies is starting to fade. These coming changes mean that people shouldn’t ­assume they can hide forever behind blockchain technology, nor should they ­assume there are no tax consequences,” Mr Drum told reporters.

The ATO currently treats Bitcoin as an asset, not money.

As a first step, the ATO is expected to begin enforcing 100-point identification checks on crypto buyers.