Germany Not to Tax Bitcoin Purchases

According to the Ministry of Finance, Germany won't tax bitcoin users for using the cryptocurrency as a means of payment
01 March 2018   985

According to the guidance, published Tuesday by the Ministry of Finance, Germany will regard bitcoin as the equivalent to legal tender for tax purposes when used as a means of payment.

The Ministry of Finance based its guidance on a 2015 European Union Court of Justice ruling on value-added taxes (VAT).

The new German document considers cryptocurrencies as a legal method of payment. The document states that cryptocurrencies become the equivalent to legal means of payment.

According to the document, converting crypto into a fiat currency is a taxable miscellaneous benefit. However, an intermediary for the exchange will not be taxed.  But when a customer buys a product with bitcoin, an article of the EU's VAT Directive will be applied to the price of bitcoin at the time of the transaction.

The document also states that payment fees sent to digital wallet providers or other services can be taxed. Miners will not be taxed, as their services are considered to be voluntary.

Traders, that buy or sell bitcoin in their own name as an intermediary will receive a tax exemption. At the same time, an exchange operating as a technical marketplace will not receive any such exemption.
 

SEC to Need More Info on BTC ETF

SEC is gathering more input from the public – to date, according to the agency, more than 1,400 comments have been submitted
21 September 2018   167

The US Securities and Exchange Commission (SEC) announced the beginning of a formal process for considering the application for the creation of bitcoin-ETF from the New York companies VanEck and SolidX. Nevertheless, the agency appealed to the community for more information. This is stated in the document published on the SEC website.

Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.
 

The US Securities and Exchange Commission

At the moment, the SEC received about 1,400 comments.

According to the document, the Chicago Board Options Exchange (CBOE) has signed an agreement on the exchange of data on bitcoin transactions, trading and the state of the market with the cryptocurrency trading platform with Gemini.

The agency asked commentators to clarify the position of Gemini in the digital currency market and assess the likelihood of increased volatility at this site in connection with possible trades of bitcoin-ETF.

So, before September 30, the department had to decide on whether to approve, deny or initiate the proceedings. The SEC chose the latter, which is likely to delay the process until the next year.