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   713

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.
 

Survey: Millionaires do not gain Enough Crypto Advice

A survey revealed today by Capgemini shows: only 34.6 percent of high net worth individuals have got cryptocurrency information from their wealth managers
19 June 2018   50

According to Reuters, the information is received from Capgemini’s annual survey, the World Wealth Report. The latest edition demonstreted that additionally to the aforementioned 29 percent, a further 26.9 percent are “on the fence” relatively to  cryptocurrency investment - meaning that well over half of HNWIs are aware of and/or interested in cryptocurrency like Bitcoin.

A Paris-based business consulting corporation, Capgemeni, determines HNWIs as people with at least $1 million accessible to invest, outside of asset holdings such as real estate, automobiles, and art. At the start of 2018, there were a counted 15.2 million such people in the world. This part of society controls more than $70 trillion, and Capgemini expects that figure to rise to $106 trillion by 2025.

Also it was found by the study that 71.1 percent of younger millionaires (age 40 and below) place “high importance” on getting information about cryptocurrency from their wealth management firms, as do 13 percent of those aged 60 and over. In the whole, only 34.6 percent of them claimed that they had learnt cryptocurrency information from their wealth managers. 

This probably points to a trend of wealth managers being a bit behind the times. It also unfolds that a market force which could go some way towards explaining the fact that at least 167 new cryptocurrency hedge funds were instituted last year. During the year of 2017, these funds saw massive growth in profit.