The Federal Government has introduced a proposed change to the way it regulates bitcoin.
The move is expected to be debated by the Senate next week.
The bill, introduced by Senator Sam Dastyari, proposes to regulate the virtual currency as a commodity, rather than a currency.
The bill, titled “Regulation of digital currencies”, was introduced by the Labor Government last month.
Bitcoin has surged in popularity since its inception in 2009, after the collapse of the Soviet Union, and its value has soared since then.
It’s been used as a way to exchange money, with users creating accounts to spend the virtual money, which has also attracted more mainstream use.
There’s a debate as to whether the virtual currencies are legal tender, which will be a subject of further debate.
Currently, digital currencies are only regulated by governments, such as Australia, New Zealand and the US.
Mr Dastyaris bill is not the first to address the digital currency.
The Senate last month voted to make it illegal to use bitcoin to buy or sell goods and services.
The Government has yet to announce a date for its proposed change.
With reporting by AAP