Belgian tax authority investigates cryptocurrency operations

Following a 33% tax on virtual currency gains Belgian regulator tightens its grip on cryptocurrency
04 March 2018   129

Special Tax Inspectorate has launched 3 distinct investigations that concern exchange operations with cryptocurrency. Several Belgian citizens have allegedly traded virtual currency at foreign exchanges and yet to file the gains made on the operations. STI received such information from foreign tax authorities. Now, the regulator will try to contact those tax offices directly with the intention to elaborate on the allegations.

To remind the readers, Belgian regulator has made a bold move last year with the introduction of 33% tax on any cryptocurrency income and instruction to refer to it as "Other income" in the tax filing form. But such measure turned out to be difficult to actually implement as most of the virtual asset are based on foreign platforms that are prone to be resistful to authority penetration.

At present, in Belgium cryptocurrencies are neither legal nor illegal. And despite the fact that Minister of Justice Koen Geens has proposed the implementation of a new legislation that is meant to control all of the digital currency transactions, and despite the fact the country's tax authority approved the suggestion still Brussels didn't announce any comprehensive policy. Belgium is in a standby mode for now waiting for a common European policy.

Crime prevention and regulations should evolve with new technologies. cryptocurrencies should be subject to stricter rules because of their growing popularity with cybercriminals and scammers, and crypto companies should be obliged to cooperate with authorities.


Koen Geens

Minister of Justice,  Belgium

Crypto Taxpayers to be supported in India

Cleartax, the largest Indian tax filing platform joins Zebpay exchange to help crypto taxpayers
24 March 2018   102

The object of this partnership is to educate Bitcoin traders and investors about the current tax laws and how to apply them in stating cryptocurrency profits and incomes. Indian authorities are aimed to find the best approach to Bitcoin and the other kinds of cryptocurrencies. The recent declarations of the regulators that new instructions would be accepted in a short time, have not been followed by real actions. So the attempts to enforce the control on this sphere have led to summaries that this task in not going to be simple at all. According to last month media reports, new frameworks and rules were waited by the end of March.

Though they failed to to introduce extensive regulations, the Indian authorities are focused to tapping into crypto earnings. In a previous month the Income Tax Department released notifications for thousands of cryptocurrency investors, as reported.

The Cryptocurrency Advisory Plan will help Indian bitcoin investors and traders in this year's tax campaign. The biggest tax filing platform Cleartax joins the Indian bitcoin exchanges and wallet providers Zebpay. They are both objected to support taxpayers to understand and abide by the law regarding taxation of the transactions with cryptocurrencies.

Cleartax declared it has the tax and technological expertise “to help people understand how bitcoin works”. Besides, the platform has started tax filing services for cryptocurrency investors. The Cleartax CEO and founder Archit Gupta claimed that together with Zebpay they are going to “simplify taxes for Indians”. The head of exchange at Zebpay, Nischint Sanghavi added that he believes the partnership with Cleartax will simplify tax planning for Zebpay`s customers.

In February about 100,000 cryptocurrency investors received tax notices from India`s Income Tax Department. Questionable dubious transactions, authorities investigated some of the cryptocurrency exchanges, and banks paused many of their accounts. Then the governmental pressure caused significant drop in trading volumes.

The authorities in Delhi have set a number of warnings against investing in BTC. Also the largest commercial banks have restricted severely the operations of local exchanges and individual cryptocurrency traders, even before any law demanding such measures is adopted.