How is Bitcoin taxed in the UK? Accounts & Legal

VAT on Bitcoin - UK tax authorities change their mind (good news!)

BitPrice just had a very positive meeting with HMRC regarding VAT and Bitcoin. We attended with Marc Warne of Bittylicious, Eitan Jankelewitz of Sheridans solicitors and Michael Parsons.
We explained in detail what Bitcoin is and how it is used, following which they agreed that their categorisation of Bitcoin as: "a face-value voucher... likely 'face value vouchers'" is inaccurate. They will be rescinding this advice.
This is significant because under that definition, VAT would be due on the sale of Bitcoin, making the use of Bitcoin largely unviable in the UK. HMRC are to take legal advice on exactly how Bitcoin should be treated with regards to VAT, but the meeting was very positive and I would expect further good news in the new year.
Tom Robinson, BitPrice
submitted by bitprice to Bitcoin [link] [comments]

ATO VAT regulation on Bitcoin has driven Melbourne-based CoinJar out of Australia to the UK

ATO VAT regulation on Bitcoin has driven Melbourne-based CoinJar out of Australia to the UK submitted by RenegadeMinds to melbourne [link] [comments]

ATO VAT regulation on Bitcoin drives out innovators -CoinJar moves to the UK

ATO VAT regulation on Bitcoin drives out innovators -CoinJar moves to the UK submitted by RenegadeMinds to australia [link] [comments]

[SD] DOGECOIN - £0.74/1k ($1.20) - HMRC scraps VAT on virtual currency Bitcoin - UK Seller, so prices are down!

DOGECOIN - £0.74/1k ($1.23)
£0.74/1k ($1.23) - PM or Comment to arrange a trade.
Price are this low because HMRC (in UK) have scrapped plans to introduce VAT on Cryptocurrency sales.
Check my current verification post:
I can also sell you coins through DogeForSale, if you want to use an escrow:
submitted by ShibeTrader to dogemarket [link] [comments]

[SD] Cheap cheap cheap DOGECOIN - £0.72/1k ($1.20) - HMRC scraps VAT on virtual currency Bitcoin - UK Seller, so prices are down!

Cheap cheap cheap DOGECOIN - £0.72/1k ($1.20)
£0.72/1k ($1.20) - PM or Comment to arrange a trade.
Price are this low because HMRC (in UK) have scrapped plans to introduce VAT on Cryptocurrency sales.
submitted by ShibeTrader to dogemarket [link] [comments]

Will Bitcoin be impacted by the new UK VAT Moss regulations coming into force on January 1st?
The new regulations are for "digital goods". Do cryptocurrencies count?
submitted by takeontheroad to Bitcoin [link] [comments]

UK Treasury minister David Gauke said meetings had taken place with “stakeholders” about the VAT treatment of trades of Bitcoin.

UK Treasury minister David Gauke said meetings had taken place with “stakeholders” about the VAT treatment of trades of Bitcoin. submitted by kkoolook to Bitcoin [link] [comments]

UK will benefit after ECJ VAT ruling over Bitcoin

UK will benefit after ECJ VAT ruling over Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

APR 20 DIGEST: Spain VAT Exempts Bitcoin, UK Bankers Discuss Digital Currencies at SWIFT Event - Bitcoin Education
submitted by MuchBitcoin to MuchBitcoin [link] [comments]

UK will benefit after ECJ VAT ruling over Bitcoin

UK will benefit after ECJ VAT ruling over Bitcoin submitted by alistairmilne to Bitcoin [link] [comments]

Trying to tax Bitcoin transactions(UK VAT)

submitted by Usernamemeh to FinancialTransactions [link] [comments]

UK Gov changes plan on Bitcoin VAT

UK Gov changes plan on Bitcoin VAT submitted by eraticfox to Bitcoin [link] [comments]

What is money?

Hey all, this might be a bit outside of the "Bitcoin" realm, but I wanted to create a sounding board to help me grasp what money is, how it relates to economies, and where Bitcoin can come in. I'm just writing out my thoughts, and I'm open to comments and opinions or corrections :). Hopefully this can be helpful to others too.
Note, that I live in the UK and I feel like a lot of information talks about the dollar, and I never know if it applies the same to my currency. I will give examples in dollars, but they should apply to any world currency (eg. GBP) to the best of my understanding.
I saw a link recently on this subreddit to this site: If I were to summarise what I learnt, it is a mental model that frames fiat currency in an interesting way, but I wouldn't be surprised if it did contain some misinformation. -- It claims that the model applies to any fiat currency.
OK. Pretend that all of a countries money = 1. If you own $100, you own a fraction of the countries money, so if there is $10,000 in the world you own 0.001 of all dollars. So naturally, if more money is printed, you start to own a smaller fraction of that money.
The Modern Money Theory (MMT) gives me the impression that money is basically a tool owned by the countries government (owned by someone who isn't the general public). Money is not an asset, it is a liability (hence why it loses value over time). People pay taxes and the Government will try to redistribute the wealth by investing in projects like The Army, Green Energy, etc.
This is supposed to be distributed in ways that help the country's economy, ensuring that the country is productive and is exporting things to other countries. When deemed necessary, more money can be printed to help redistribute wealth to the areas that the Government wants to invest in. I think that the more successful your economy, the more your money is worth.
This means one thing to me; PEOPLE DO NOT OWN/HAVE MONEY. Don't save fiat; it is a tool to help the economy, not a thing of value that you should store. I feel like saving actually keeps money from circulating in the economy and probably works towards needing to print money. Instead, buy assets; you put money back into the economy, and you get to hold onto your wealth. What can you invest in? Ok, that's not such an easy question to answer. Maybe buy gold (or *ahem* Bitcoin), or invest in yourself to make something valuable and ultimately start your own business.
MMT says that fiat has value because people pay taxes in fiat. Ultimately, we work, and earn in order to pay taxes (income, VAT, road tax, etc.). We spend in fiat, because the person accepting fiat will need to pay taxes and the next person will do the same, so now the whole country values your fiat currency.
Because of this, you need liquidity, you need to have some money to spend on groceries and living, and you need some money for a rainy day lest you end up in an emergency situation with not enough time to handle it with money. -- I think the more something costs, the more time you typically will have to pay it, so there might even be a formula you could create or use that helps you decide what to keep as cash, and what to spend.
So long story short, money is a token that represents a tiny fraction of your countries economy. It is also something that the government can manipulate and move around as it pleases in the same way a business invests in departments for its company. We are all just a cog in the machine that is our country's economy.
One thing I have not talked about, is the role of banks and credit and interest. I haven't expanded my thoughts in that area yet, but I feel like that they serve a different purpose.
Where does Bitcoin fit in? Well, just like gold, it is a potential asset. It has an interesting property though; it has liquidity. This give it the potential to be used for local trades, meaning that people can save their wealth and use it for local transactions too. It is global, so it also has the ability to be used for global transactions too. For now, it is an asset for saving your wealth; I think that as more people use it and favour it as a storage mechanism, more people will start to accept it for small trades too. Hey, maybe if there's a tool to easily calculate taxes from Bitcoin trades, that could help with adoption.
What would happen to fiat currency if everyone collected fiat for the sake of paying taxes, but used conversion tools to allow them to keep the majority of their wealth in Bitcoin while knowing the appropriate taxes to pay? Honestly, I fall short here, because at that point, you can no longer measure a country's economy by its currency. This is where I need to maybe learn how countries that do not have their own currency measure their economy.
I suppose governments, or ourselves, will have to invent new ways to measure and manage our economies, and I imagine i will be a much more transparent. I think it is an important question to answer as Bitcoin would shift wealth from being country wealth, to individual wealth (for everyone, not just those with enough income and education to invest in assets).
submitted by tookthisusersoucant to Bitcoin [link] [comments]

Weekly FIREUK Blog posts

UK FI blogger posts from the last 7 days
Reddit app allows sideways navigation to view across the table
FI Blogger Last Posted Latest Post Posts This Week
Financing Freedom Fri, 10 Jul 2020 Bitcoin value ‘increasingly understood’ by Millennials 1
Money By Choice Fri, 10 Jul 2020 Why are my investment returns lower than expected? 1
Monevator Fri, 10 Jul 2020 Weekend reading: Corona-crisis, round two 3
Tuppennys Fireplace Fri, 10 Jul 2020 Investing Habits for the Financially Frugal 2
Simple Living In Somerset Fri, 10 Jul 2020 fancy fintech’s fishy fun 1
MedFI Fri, 10 Jul 2020 Emergency Fund 2.0 1
Life after the daily grind Fri, 10 Jul 2020 Brainwashed 1
averagemoneyman Fri, 10 Jul 2020 The Basics You Need to Know to Start Investing 2
Gentleman's Family Finances Fri, 10 Jul 2020 Do you include your home in your net worth? 4
{ in·deed·a·bly } Thu, 09 Jul 2020 Instinct 1
7 Circles Thu, 09 Jul 2020 The DIY Financial Advisor 5 – Practicalities 4
MoneyGrower Thu, 09 Jul 2020 Honey – referral and sign up codes 2
The Young Money Blog Thu, 09 Jul 2020 Why I’m taking some time out 1
Banker on FIRE Thu, 09 Jul 2020 The Really Boring (And Highly Effective) Way To Get Rich 2
Money Bulldog Wed, 08 Jul 2020 Is It Worth Booking a Holiday in 2020? Or Even 2021? 2
Mouthy Money Wed, 08 Jul 2020 Eat-out vouchers and a VAT cut for hospitality to get Brits out and about, and the economy moving 3
Plan On F.I.R.E Wed, 08 Jul 2020 The Magic of Mortgage Refinancing 3
The FIRE Shrink Wed, 08 Jul 2020 The Financial Dashboard – June 2020 2
Fire And Wide Wed, 08 Jul 2020 Optimisation – Playing The FIRE Triangle: Part IV 1
The Humble Penny Tue, 07 Jul 2020 SIDE HUSTLE IDEAS UK: Selling on Amazon vs eBay? 1
Sparkle Bee's Journey to FI Tue, 07 Jul 2020 The Virus 2
Disease called Debt Tue, 07 Jul 2020 Easy and Simple Ways to Make your Company Way More Profitable in 2020 1
Sassenach Saving Sun, 05 Jul 2020 Lockdown Easing 1
The FI Fox Sun, 05 Jul 2020 Why everyone should start a blog 1
Hustle Escape Sun, 05 Jul 2020 The Psychology of Anchoring and Adjustment 2
One Million Journey Sun, 05 Jul 2020 Portfolio Update #19 June 2020 – 100,347€ 1
theFIREstarter Sun, 05 Jul 2020 don’t faint it’s a blog post 1
Money-Side-Up Sun, 05 Jul 2020 How To Negotiate A Salary During A Recession: Simple Strategies To Help You Succeed 1
Money Mage Sun, 05 Jul 2020 June 2020 Savings Report 1
firemusings Sat, 04 Jul 2020 Time to Change the Car (Part 1) 1
Playing with Fire Sat, 04 Jul 2020 ‘Hi, I’m the new girl!’ Expat financial mistakes learnt the hard way. 1
FIRE v London Sat, 04 Jul 2020 June 2020: Disadvantage month 1
Saving Ninja Sat, 04 Jul 2020 Savings Report #24 – Moving Country is Hard! 1
A Way to Less Sat, 04 Jul 2020 Monthly Spending – June 2020 1 Fri, 03 Jul 2020 June ’20 – Net Worth and monthly update #22 £569,037 (+£13,570) 89% FI 1
Full list of blogs included in checker - here
For list consideration - Submission form
submitted by reckless-saving to FIREUK [link] [comments]

[WTB] in the UK - 999.9 silver, up to 10ozt bar(s) or coins

I'm new to PMs and want to start with some shiny silver. Everything I see from dealers is either out of stock or 100% markup on spot price.
Most importantly, has to be in the UK as international shipping, insurance, and import costs/VAT make it a bad deal other wise. Hence why I'm post a WTB rather than replying to all of these great sellers.
Happy to pay by most methods, preference is actually bitcoin or ether but PayPal FF also fine.
Lastly, I do very much prefer shiny/mint/nice-to-look-at pieces, fickle as that may sound!
Any Brits wanna help me begin my collection?!
submitted by _Pohaku_ to Pmsforsale [link] [comments]

Bitcoin-Friendly Countries

Bitcoin-Friendly Countries
Cryptocurrencies are a new asset that appeared only in 2009 with the first decentralized cryptocurrency – Bitcoin. The authorities of most countries haven’t managed yet how to develop its regulation, but there are already those who have introduced a strict prohibition against digital money, and those who have legalized cryptocurrencies in full.
by StealthEX
Today we prepared for you the list of some of the most Bitcoin-Friendly countries, where blockchain technology is closely intertwining with the life of ordinary people.

The United States of America

From the very beginning, the USA has been one of the pioneers of building the crypto-friendly society. Not surprisingly the United States has the largest number of crypto users and the largest number of Bitcoin’s ATMs in the world.
Today a lot of blockchain startups are working in Silicon Valley like BlockCypher, ThunderCore, Blockstream, CipherTrace, Cryptanna, MakerDAO, Coinbase and many others.


Canada can boast of two cities that are considered as “Bitcoin hubs” Toronto and Vancouver. Cryptocurrency itself is regulated by laws against money laundering and terrorism financing in Canada.
In this country there is a very lively crypto community and many blockchain startups like Decentral, Vanbex Group were launched here. Nowadays thousands of organizations accepting BTC and other cryptocurrencies for payment are located in Canada.

The United Kingdom

The UK is considered one of the world’s leading financial and innovation centers. Therefore, in this country, there are also numerous blockchain-related projects. The United Kingdom is sure that the popularization of a new payment solution is inevitable and now preparing for the massive adoption of cryptocurrencies. Nowadays you can easily order a pint of beer in some local pubs and pay for it using BTC.
Moreover, the Bank of England is closely monitoring cryptocurrency technologies and even asked the public to put forward ideas on how to improve their monetary constitution. Currently, Bitcoin is regarded as “private money”, where VAT is collected in the usual way from suppliers of any goods or services sold.


This country can be proud not only for being Bitcoin-friendly but also for having its own “Bitcoin City” called Arnhem. Here, almost everything can be purchased using crypto coins, including gas, housing, bicycles, and even dental services.
At the legislative level, cryptocurrencies are not yet regulated in accordance with the Dutch Financial Supervision Act, and as a result, numerous blockchain startups and even the Bitcoin Embassy in the center of Amsterdam have occurred.
In addition, the country’s banking sector, including ABN AMRO Bank and ING, is increasingly considering blockchain technology as a way to improve their own system and reduce costs. Netherlands is a regular participant in conferences regarding the development of Bitcoin.


Many people believe that this is the birthplace of the famous Satoshi Nakamoto – the creator of Bitcoin. The country is the first and only one that has a proper legal system regulating the trade in digital currencies.
Moreover, the authorities of this country are considering launching Japan’s own national cryptocurrency – digital Yen. Today Japan is of the largest cryptocurrency market.


In February 2018, the Government of Malta decided to support blockchain-related projects, cryptocurrencies, and ICOs. That’s why many companies are considering moving to this paradise blockchain-island. At the same time, Malta is one of the leaders in online gaming and there are many implemented projects that connect blockchain technology with the gaming industry.


Sweden is among countries that want to eliminate paper money in favor of 100% digital currency. The Swedish Financial Supervisory Authority (Finansinspektionen) has legitimized the fast-growing crypto industry by publicly announcing Bitcoin (and other cryptocurrencies) as a means of payment.
Sweden is home to numerous blockchain-based startups, including Safello, Starflow, Norbloc, Strawpay.


Historically, Switzerland has always been famous for the level of its banking system and banking secrecy, so it is not surprising that the authorities of this country didn’t prohibit the circulation of digital currencies.
This country has become a kind of “tax haven” for cryptocurrencies. That’s why many blockchain startups started here and organize the headquarters of their business.


This small country is also open to innovative technologies. The government implemented blockchain technology to the healthcare system, banking services and even management, allowing its citizens to be among the first to use municipal and state services via the Internet. With one of the highest levels of Internet penetration in the world, Estonia has a good opportunity to become cryptocurrency capital of Europe.
All the listed countries have demonstrated their hospitality to cryptocurrencies. But of course this is not the comprehensive list and as the crypto community will continue to grow the more countries will be ready to use the advantages of blockchain technology.
We will be delighted to know your thoughts on Bitcoin-friendly countries.
Hit your comments below.
Original article was posted on
submitted by Stealthex_io to u/Stealthex_io [link] [comments]

Global Metal-to-metal Seal Market 2020: Industry Analysis, Geographical Segmentation, Drivers, Challenges, Trends Forecasts By 2025

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submitted by rasika071 to u/rasika071 [link] [comments]

UK Crypto Regulation Is Changing, Recognition Looming at Long Last

UK Crypto Regulation Is Changing, Recognition Looming at Long Last
The United Kingdom has long been a financial mecca. Ever since the Big Bang and the arrival of Thatcherism in the ‘80s, Britain has cultivated a finance-friendly environment revolving around the city of London, with deregulation inviting a wave of foreign investment and trading activity. However, while it has even been suggested that London will overtake San Francisco as the fintechunicorn capital of the world, the U.K. has been less welcoming of crypto than it has of traditional finance.
As industry bodies like CryptoUK as well as other commentators have complained, the lack of regulatory clarity and the presence of suspicion toward cryptocurrency has been holding back the U.K.'s crypto industry. However, the situation has slowly begun to change in recent months, with the Financial Conduct Authority (FCA) updating its guidelines on cryptocurrencies, and with a series of consultations on crypto regulation due to begin toward the end of the year.
While these are only preliminary steps, they will most likely go a long way in establishing the kind of standardized, rule-bound environment that will provide investors and the general public with the confidence that crypto is safe.

Cryptocurrency and the U.K.

At the moment, the U.K. probably sits somewhere between the middle and upper ranges of the international leaderboard for cryptocurrency regulations. It hasn't produced any specific crypto-focused legislation as of yet, but it nonetheless has taken a fairly lenient approach to crypto, despite most officials having nothing but bad things to say about Bitcoin (BTC) and other digital currencies. Most obviously, it hasn't banned crypto in general or any kinds of coins/tokens (e.g., privacy coins) in particular, while it also doesn't apply any existing financial laws too stringently to cryptocurrencies.
Related: Differences Between Tokens, Coins and Virtual Currencies, Explained
For the most part, the U.K.’s government, the Bank of England and other institutions haven't seen it fit to come down heavily on crypto simply because none of them — at least, not until recently — have really believed that the industry has been big enough to warrant dedicated measures. For instance, Bank of England Governor Mark Carney declared in March 2018 that the market for cryptocurrencies isn't a threat to U.K. financial stability:
"At present, in my view, crypto-assets do not appear to pose material risks to financial stability. Looking ahead, financial stability risks could rise if retail participation significantly increased or linkages with the formal financial sector grew without material improvements in market integrity, anti-money laundering standards and cyber defenses.”
And just as British authorities and lawmakers haven't been particularly scared by the rise of crypto, the government and Her Majesty's Revenue and Customs (i.e., the British equivalent of the IRS) have been comfortable taxing the proceeds of cryptocurrency trading and crypto-related business according to the current tax regime.
For businesses, for example, income tax is chargeable to the profits and losses that arise from transactions involving cryptocurrencies, while the U.K. also charges capital gains tax to anyone who makes a profit via crypto trading of over 12,000 British pounds (about $14,500). Added to this, a value-added tax (VAT) is also chargeable if anyone sells goods or services in the U.K. for cryptocurrency.

Gaps and uncertainties

Still, even though the cryptocurrency industry has been able to gain an initial foothold in the U.K. within the present legislative environment, industry groups and figures believe that specific crypto-focused regulation needs to be introduced, in order to provide greater clarity and support for anyone operating an exchange in the U.K. or holding an initial coin offering (ICO). Toward the end of July, CryptoUK wrote an open letter to the newly installed Chancellor of the Exchequer, Sajid Javid, in which the trade body's chairman, Iqbal Gandham, cited three reasons why the U.K.'s crypto industry was "falling behind other countries."
The first of these was the difficulty crypto exchanges and other platforms have encountered in opening bank accounts in the U.K., which derives largely from the fact that many aren't currently licensed by any regulatory body (there are a handful of exceptions, however). Gandham wrote in the letter:
"In our recent survey of crypto businesses, we found that 73% of firms have opened a bank account in another country due to complications with banking in the UK. More than half of those who tried to open an account have been rejected, with half receiving no reason from the bank."
Most significantly for the viability of the U.K.'s cryptocurrency sector, there is also the aforementioned lack of regulatory certainty, given that no specific regulations or laws have been introduced that directly address digital currencies. Gandham continued on:
"Secondly, we need a proportionate, well-designed regulatory regime for crypto assets in the UK to support the sector’s growth. Whilst the UK Government has made positive noises, other countries such as Japan and Switzerland have grasped the initiative more strongly. As the Government seeks to compete on the global stage post-Brexit, we urge you to take the lead in attracting crypto companies to base themselves here in the UK."
Lastly, Gandham ended CryptoUK's letter by urging Javid and the British government simply to be more proactive in nurturing the crypto and blockchain industry. And while Gandham reaffirmed that the industry "needs regulatory certainty to reach its full potential in future," he nonetheless told Cointelegraph that several positive developments have occurred in recent months, beginning with the FCA's July guidance on crypto assets.
In these new guidelines, the financial regulator confirmed that it wouldn't be regulating Bitcoin and Ethereum as assets and securities, although it would be regulating security tokens and some utility tokens as such, since they often confer investor rights comparable to shares and debt instruments. Gandham told Cointelegraph:
"The FCA’s recent update to its guidance on cryptoassets is broadly a step in the right direction. Following last year’s Cryptoassets Taskforce report, CryptoUK called for additional clarity to be added to the FCA’s taxonomy and a more comprehensive explanation of how the existing regulatory perimeter applies. We were pleased to see that the regulator’s updated guidance reflected our call for a separate category to cover tokens which constitute e-money under existing regulation."
Individual members of CryptoUK are also in agreement that the new guidelines are, in general, a welcome step forward. CEO and founder of the U.K.-based exchange, Oleksandr Lutskevych, explained to Cointelegraph that industry players were involved in formulating the FCA's latest advice, saying:
"The current guidance implements the experience and knowledge gathered by crypto businesses from the international market over the last few years and represents the position of the major cryptocurrency businesses in the UK. It lays well on top of the existing financial regulations."
Encouragingly, Lutskevych also stated that the FCA was open to suggestions from the industry itself, and that it is listening to figures within it and trying to act on their advice. According to Lutskevych:
“When CEX.IO was consulting the FCA on possible ways to classify digital tokens, our experts proposed putting crypto assets meeting the definition of e-money into a separate category called ‘e-money tokens’ and placing them in the regulatory perimeter. We highlighted this in our submissions to the FCA and in consultations on crypto assets. We are delighted that the latest version of the guidance reflects our recommendation in full.”

More work ahead

Still, as with CryptoUK as a whole, believes that more work needs to be done to improve the regulatory situation for cryptocurrency businesses. Because even with the new guidance, the environment is still confused and complicated for exchanges, platforms and other related businesses, with Lutskevych suggesting that the industry has been neglected in the understandable push to protect consumers:
"To us, 'fair' regulation protects customers and clears obstacles to crypto businesses who proactively cooperate with regulators and obey the rules. So far, the FCA has done a great job protecting customers. We are expecting the next steps to help businesses.”
Lutskevych also argues that some areas of the cryptocurrency industry are being neglected by recent advances, particularly those areas that relate to token sales and ICOs:
"While security and e-money tokens and the operators that deal with them can now play according to known rules provided by the MiFID (Market and Financial Instruments Directive) and EMD (e-money directive), there are components of the industry for which regulation must be rethought from the ground up. For example, we think it would be bad practice to apply crowdfunding regulations to ICOs."
But while the U.K. cryptocurrency industry is still being hobbled by an absence of supportive legislation and/or regulation, there is general agreement that, even beyond the latest FCA guidelines, things would appear to be slowly improving. The European Union and its member states will begin enforcing the fifth Anti‑Money Laundering Directive beginning in January 2020. While it's likely that the U.K. won't be a member of the EU by this time, it will still abide by the directive, with exchanges and other crypto-processing firms being required to register with the FCA and submit suspicious activity reports. The directive would introduce regulations for crypto wallet and exchange firms, forcing them to register with their local authorities.
This would go a long way in helping U.K.-based exchanges apply for bank accounts. At the same time, Gandham points out that several consultations on cryptocurrencies are due to take place in the U.K. toward the end of this year, which could ultimately also make the situation for crypto-related businesses considerably easier. Gandham added:
"This will determine the outlines of future crypto regulation and is the opportunity to ensure this is done in a way which is proportionate, fair and future-proofed. We would expect to see this lead to a Regulated Activity Order to specify cryptoassets as a new regulated activity, introduced through secondary legislation."


For the crypto industry, those planned consultations cannot come soon enough. It's hard to say how such consultations — such asone regarding a ban on the retail sale of crypto derivatives — will pan out, but given the emergence of Facebook's Libra, it's likely that U.K. authorities will now proceed with extra impetus and resolve. Gandham hopes regulations come soon so that the U.K. would not lag behind the rest:
"The launch of business models with the scale and ambition of Libra illustrates why it is so important for jurisdictions like the UK to get crypto regulation right now, to create the right environment for encouraging innovation and protecting consumers, rather than attempting to regulate later in a retroactive way."
Likewise, Lutskevych agrees that the entry of massive corporations like Facebook into the crypto industry has convinced U.K. regulators that crypto is not only big, but will get bigger with every passing month and year. According to Lutskevych:
"If launched, Libra would have enormous implications on global finance, and local governments cannot ignore this. As a result, regulators at all levels are likely to adopt more specific rules on digital assets for organizations like Facebook. For example, the US already reviews a proposal to ban big tech companies from issuing digital money."
Related: Reasons Why US Government Won’t Ban Libra Cryptocurrency
Taken together, such developments indicate that the days of crypto being largely unregulated in the U.K. are severely numbered. To take another example, Her Majesty's Revenue and Customs recently began requiring crypto exchanges operating in the U.K. to provide it with user data so that it could crack down on potential cases of tax evasion involving cryptocurrencies.
If nothing else, this underlines how the British government has begun recognizing crypto as a significant and substantial presence in the U.K.'s financial landscape, one that could, at the very least, make a difference to the nation's tax receipts. And assuming that the cryptocurrency industry continues its steady rise to mainstream prominence, it's only a matter of time before crypto in the U.K. receives the regulation it has long demanded.
submitted by Rajladumor1 to omgfin [link] [comments]

To be clear: An unfavorable ruling by the European Court of Justice regarding VAT and Bitcoin would make accepting Bitcoins for merchants in the EU around 20 % more expensive than other payment solutions.

Scenario: Carlos, a customer, buys a pizza from Mark, the merchant, and pays in Bitcoin.
First of all: The question is not, whether VAT applies to the pizza. That will definitely be the case. If I'm buying a laptop in, let's say, Germany for 1190 EUR, then 190 EUR of that (VAT in Germany is 19 %) goes to the tax man, regardless of whether I pay with euros, bitcoins or gold.
The question is, what happens to the bitcoins afterwards. The merchant now has bitcoins and will want to get rid of them at some point. Either to exchange for euros or to buy a product or service. So he is again selling a "product" (this time bitcoin, considered a commodity under current German tax law, as far as my reading of the law goes). If the product is not ruled VAT-exempt, he will have to pay another 19 % (or whatever the rate in his country is) at that point.
That's the issue.
Another question is, whether that also applies, if the merchant uses BitPay. In the worst case, BitPay could be considered as just an agent acting in the name of the merchant (their terms of use suggest something like that), thereby still putting the merchant in a position, where he - from a tax perspective - has briefly owned bitcoins and then sold them again.
In my opinion, this tax question is super critical and needs to be the top discussion right now. The Bitcoin Foundation and other Bitcoin associations (Bundesverband Bitcoin e.V. in Germany) need to closely follow the case C-264/14 Skatteverket v David Hedqvist where the European Court of Justice will decide about just that. And we need to provide resources to bring about a sensible ruling.
See and consider donating!
Edit: I should have added the disclaimer, that I'm not a lawyer and this is just my personal interpretation, which very well might be wrong. I have however been following this topic for a while, talked to various parties and read some of the laws involved.
Edit 2: Alright, a little intermediate summary of the discussion below: I'm probably mistaken about the details of case C-264/14 as rtuck99 pointed out. It seems that case will only deal with the question of whether bitcoin exchange fees are VAT-exempt. In my opinion my larger point still stands though, that the ECJ will likely decide about VAT on the bitcoins themselves at some point. Compare the UK guidelines on Bitcoin and VAT with this statement by the German Federal Ministry of Finance (in German, alternatively see this press release by Bundesverband Bitcoin e.V. in English). These two guidelines are - in my opinion - incompatible with each other. Something that ultimately the ECJ will have to resolve. Maybe that will not happen as part of case C-264/14 (but it might, as it's somewhat related, so it still seems risky to me, to let David Hedqvist fight that on his own), but it will happen eventually and we need to have our side presented well then.
Edit 3: David Hedqvist commented below that the case might indeed deal with the issue in a broader sense.
submitted by jav_rddt to Bitcoin [link] [comments]

The Regulatory/Legal Environment

Hello! My name is Daria Volkova and I am the Head of Platinum Legal Department. Our team believes that these are exciting times for the crypto market. We supported more than 100 clients, created and promoted their STO and ICO campaigns, got from an idea to funding in a matter of 2.5 months! See the full list of our services: We are more than proud to present our education project. The UBAI can help you to learn specifics about cryptocurrencies and blockchain technologies. Learn all about ICO avenues and opportunities, plug into the world of trading cryptocurrency markets, become an expert in scam projects, promoting ICOs and STOs, launching your own campaigns and many more! What are the different cryptocurrency regulations in major countries? Find the answer after reading this article.
Cryptocurrency Regulations across Major Countries
Cryptocurrency and the blockchain industry may seem sufficiently exciting and attractive to you now. After all, you are taking the time and effort to study this course. You may be planning to work in cryptocurrency and the blockchain industry. Of course, we want to encourage you and help you proceed toward your goal. But it is also important you understand the regulations guiding the blockchain industry to help keep yourself out of trouble.
This year, in particular, seems to be the year in which a lot of countries are looking to finally coalesce the regulations relating to the blockchain industry into a workable legal framework. Some countries are more accommodating to cryptocurrency and blockchain technological innovations while others are still more cautious. We will examine how each major country is forming their own regulatory framework for the blockchain industry.
Cryptocurrencies are not considered legal tender in Canada. This was clearly expressed by the country’s Financial Consumer Agency (FCA). Canada, like the US, has yet to clearly define or legislate a framework surrounding cryptocurrencies. But Canada still appears to be among the most transparent of countries for the nation’s interpretation and enforcement of the law surrounding cryptocurrencies (aside from Switzerland). For the time being, Canada has clearly stated its reluctance to adopt cryptocurrency as a legal tender, due to its high volatility. “ “The United States of America (USA)
There are certain laws regarding transactions in virtual currency in the US today but there is still no comprehensive legal framework. The Commodity Futures Trading Commission currently regulates virtual currencies as commodities. The CFTC is the first US regulator to allow for public cryptocurrency trading. The Securities and Exchange Commission requires registration of any virtual currency traded in the US if it is classified as a security (e.g. by the Howey test).
The regulatory authorities have not yet formulated or offered a coherent framework for regulations regarding cryptocurrencies. Typical of most legislators and regulatory agencies in the US, the Securities and Exchange Commission (SEC) has intensified its focus on the pressing need for comprehensive regulation. And it seems everyone is waiting for the right catalyst to coalesce into a usable set of legal guidelines that can protect the investing public and also allow for blockchain and cryptocurrency innovation as well.
If cryptocurrency becomes a form of legal tender in the US, there will likely be stringent laws on its use. However, if cryptocurrency is treated like a security, cryptocurrencies would be regulated under securities law as interpreted by the SEC. Present securities laws place a large number of limitations on who is able to buy securities, how they are traded, and how to ensure transparency in the flow of information relevant to investors. Also note that non-US investors may experience their own difficulties getting a license to trade cryptocurrencies in the country. “ “Japan
Japan has always been one of the most positive and forward-thinking nations regarding cryptocurrencies and the blockchain. Of course, they were cautious at first, and they knew no more than anyone else in government, which means they literally knew nothing. But they took time to research, learn, and develop an approach to regulate the industry without killing it. The official policy is clear: Protect the public interest, but also encourage the growth of the industry with a legal framework that allows for innovation in blockchain and cryptocurrencies.
The situation in China is a sad one. The country has been taking increasingly strict actions to discourage and outlaw any activity related to the blockchain industry. China has banned ICOs, frozen all accounts associated with cryptocurrency, stopped bitcoin miners and even ordered a nationwide ban on all forms of cryptocurrency trading.
China has the strictest laws against cryptocurrency. Yet, despite that fact, as of 2017, 50% of the world’s mining population was from China! If you are involved with the cryptocurrency industry it is strongly advised to stay away from China, and avoid transactions with Chinese business because of the unpredictable and negative legal framework.
“ “The United Kingdom & European Union
Brexit is scheduled to take place in March 2019, yet the UK and the EU still remain united in their regulatory attitude toward cryptocurrencies. There are also reports that the UK and EU are planning to end anonymity for cryptocurrency traders.
The UK and EU are both trying to control all the scams and frauds. They are working with cryptocurrency platforms to stop or at least report all suspicious transactions. This adds a degree of regulatory burden on the exchanges as well as increasing the associated compliance costs. Cryptocurrencies are extremely volatile. They are a high-risk investment. Governments across Europe are greatly concerned about the possibility of both retail and sophisticated investors losing a lot of money.
This has led to a situation similar to that in the US. The regulatory authorities have not yet formulated or offered a coherent framework for regulations regarding cryptocurrencies. There is an intense focus on the pressing need for comprehensive regulation. And everyone is waiting for the right catalyst to coalesce into a usable set of legal guidelines that can protect the investing public and allow for blockchain and cryptocurrency innovation as well. We certainly hope for intelligent and effective legislation from all the major countries. “ “Accommodating & Unaccommodating Countries
Below is a list of countries we have not specifically covered, but they have each taken an active position on a regulatory framework for cryptocurrencies. The following countries are either supportive or at least neutral toward cryptocurrencies:
-Switzerland. -Australia. -Nigeria. -Ghana. -South Africa. -Singapore.
Countries with the most stringent and negative cryptocurrency regulation:
-Venezuela. -South Korea. -India. -Russia.
Did you know?
It is not uncommon to see Bitcoin and other cryptocurrency ATMs throughout Japan.
Exchange robberies and hacks like MtGox, and the recent loss of $530 million NEM coins have led to serious debate in the Japanese government. The industry needs to provide a secure and manageable solution to these problems. Voluntary self-regulation and close cooperation with regulatory authorities is the most favored solution. It seems the regulators are working hard behind the scenes right now leading the industry in the desired direction in typical Japanese fashion. “ “Blockchain Industry Regulations in the USA
Based on the information received from the Columbia Science and Technology Law Review, there was a variety of responses from different government bodies about blockchain regulations. The regulators responses ranged from indifference to suspicion, and to positive expectation and excitement.
The US government has tremendous constitutional power to regulate business and industry, including of course the blockchain industry if it so desires. But basically, the federal government has been relatively indifferent and has even refused to speak on blockchain regulations despite the interest of various federal agencies. As of 2017, eight states in the US were working on bills promoting the use of cryptocurrency and blockchain technologies. It is even reported that a few states have actually begun the final steps before voting and passing legislation into law.
On April 3, 2018 Arizona introduced a law allowing corporations to hold and share data on the blockchain. The governor, Doug Ducey, put forward the legislation after the state began accepting signatures and smart contracts recorded on the blockchain as legally valid documentation. In 2017, Delaware was the first state to pass legislation allowing for shares of stocks to be legally traded on the blockchain.
Other notable developments have occurred in the US at the state or local level. Vermont makes use of blockchain as evidence in trials. Chicago uses blockchain to maintain real estate records. New York is currently evaluating four bills for the application of data storage on the blockchain. “ ” Blockchain Regulations in Europe
The entire European Union has approached blockchain with a positive and welcoming attitude. The EU has taken the position that they want to actively encourage innovation. This philosophy could support the development of cryptocurrencies in two ways:
-Encouraging the exploration of uses testing the impact and effect of the laws in a way that allows for a more finely-tuned and sophisticated understanding for all parties involved.
-Giving entrepreneurs the confidence that their target markets will be more trusting of their solution since they are operating with the explicit legal support of the state.
This approach, along with the EU’s scope as the regulator of 28 different countries, will encourage growth across the entire crypto ecosystem, and may end up transforming Europe into one of the most desirable destinations for blockchain development. Entrepreneurs are likely to move to the EU bloc to access the rich vein of available talent, as well as the positive and supportive laws.
The EU has actually disclosed through its executive arm that it is working on the use of blockchain for distributed ledger based projects. EU officials have constantly stated they are looking for ways to support more innovation with distributed ledger technology. The European Commission said it was “”actively monitoring Blockchain and DLT developments”” and has work in progress to explore “”DLT benefits and challenges as well as fields for application in financial services””.
The official press release stated that the commission clearly wants to “”pilot projects to foster decentralized innovation ecosystems and help reshape interactions between consumers, producers, creators and among citizens, businesses and administrations to the end benefit of society””. “ “Blockchain Regulations in Europe §2
Switzerland has gradually become the favored hub for cryptocurrency and blockchain development in Europe. This position has been enhanced through a Swiss non-profit blockchain and cryptographic technology ecosystem known as the Crypto Valley Association.
The Crypto Valley Association has begun working on the development of an ICO Code of Conduct to take advantage of the ban imposed by China on token crowd sales. They are hoping to capture the Chinese and Asian entrepreneurs searching for a new home.
Other countries are not as accepting of this new DLT technology and have even gone as far as classifying it as illegal and immoral behavior. There have been hyperbolic concerns most notably from China that cryptocurrencies will destabilize world financial markets.
There are various pilot projects and efforts to prove the benefits of cryptocurrencies and the blockchain industry currently being tested all across Europe. Yet even now they are barely scratching the surface of the full potential of the blockchain.
Country-by-Country Cryptocurrency Adoption
Citizens of countries all over the world have varying attitudes about cryptocurrency. These attitudes and sentiments can be very significant to the future adoption of cryptocurrencies because politicians and regulators tend to act in consideration of the collective opinion of the public. Some countries were more accommodating at first but then became stricter, despite positive public interest, basically saying they are still not sure about the possible consequences and benefits of the technology. “ “Country-by-Country Cryptocurrency Adoption
Surprisingly enough this small Baltic nation has gained a reputation for being quick to accept technological innovation. Estonia has a tech-friendly government eager to accommodate the innovative use of cryptocurrency in fields ranging from blockchain technology for healthcare and banking services; and even granting citizens the right to become what is known as “e-Residents”.
As e-Residents, Estonian citizens and businesses are provided with digital business authentication. It is also one of the first countries to employ the use of a blockchain-based e-voting service that enabled people to become shareholders of NASDAQ’s Tallinn Stock Exchange.
This fascinating and highly innovative country is now host to a number of Bitcoin ATMs and startups, like Paxful. They are cryptocurrency friendly, and cryptocurrency user friendly as well. Estonia also has highest internet penetration rates in the world.
Estonia may be a fine place to consider basing your ICO due to the friendly legal and regulatory environment.
This and a lot more you can learn on our website:! “ “Country-by-Country Cryptocurrency Adoption
The United States of America
The USA is the world’s dominant superpower, and it should come as no surprise that it has the highest number of cryptocurrency users in the world. It also has the highest bitcoin trading volume and the highest number of bitcoin ATMs.
Powered by Silicon Valley, which is home to a lot of cryptocurrency and blockchain startups, the US stands at the forefront of all things relating to cryptocurrency worldwide. Many other nations are planning to follow the US lead concerning cryptocurrency regulations. This means the USA will serve as the testing ground for cryptocurrency and crypto-regulation in the years to come. This is likely where the future regulatory framework will take shape.
Bitcoin in particular has shown massive growth in the US. This can only be interpreted as a strong tailwind for a positive regulatory environment because the population at large supports blockchain technology.
For the moment, due to regulatory paralysis and the resultant legal vacuum, ICOs are strongly advised against raising funds or basing operations in the US. The SEC has been particularly strict in its enforcement of securities and investment law which require an ICO to do an oppressive amount of compliance work. “ “Country-by-Country Cryptocurrency Adoption
When it comes to technological advancements and the standard of living of its citizens, Denmark is among the world leaders. It is considered one of the most developed countries in the world. It is also at the forefront of countries looking to reduce the use of cash money and advance to the use of 100% digital currency. As such, sentiment among the general public and political sphere actively supports the adoption of cryptocurrencies as a means of payment. The only question left is which particular cryptocurrency system to adopt. It is still unclear whether bitcoin is the one, or BTC will mainly just be accepted as a means of exchange. There are also discussions in Denmark about when to redesign its national financial system; this would be a “world first”, and a radical leap forward for cryptocurrencies.
Another fascinating thing is that the Danish Central Bank has declared BTC as a non-currency; meaning its use is not subject to the country’s currency regulations. Some of the top bitcoin startups and exchanges such as CCDEK have their foundations in Denmark.
With its open market and encouraging regulatory framework, Denmark might very well rival Switzerland in Western Europe for the position of the continent’s preeminent ICO and blockchain industry hub. “ “Country-by-Country Cryptocurrency Adoption
Sweden is quite similar to Denmark, for its social and demographic climate, and also for the government’s desire to eliminate cash. The Swedish Riksbank recently introduced negative interest rates. This can cause a spike in the demand for coins in the near future as citizens look for the best way to preserve their wealth. Negative interest rates like we have seen in Europe and Japan also, actively corrode savers’ wealth because people are actually paying a percentage of their savings to the central bank to hold their cash, in addition to losing out to inflation at the same time.
Sweden has taken the boldest step yet in all of continental Europe to legalize cryptocurrency. The country legalized the use of BTC and other cryptocurrencies as a means of payment by official public declaration. It is however expected that exchanges should file for a license in accordance with AML/CTF and KYC regulations.
Sweden is also home to a number of cryptocurrency startups such as the Safello Bitcoin exchange, and Stockholm-based KnCMiner. The gradually increasing trading volume of cryptocurrency has been a good indicator of the country’s appreciating demand for cryptocurrencies. “ “Country-by-Country Cryptocurrency Adoption
The Netherlands
The Netherlands is quite fascinating in its own right. How can a country not be referred to as Bitcoin-friendly when it can boast about having its own “Bitcoin City”? There are over 100 merchants that sell goods that can be purchased with cryptocurrency in Bitcoin City.
There are no regulations restricting the use of BTC in the Netherlands under the Act on Financial Supervision of the Netherlands. This explains why a lot of startups, BTC ATMs, and even a Bitcoin Embassy can be found in the heart of Amsterdam (the capital of Netherlands).
The friendly climate for cryptocurrency has led to a lot of very active bitcoin communities across the nation hosting regular meetups and other events. The country’s banking sector has been looking to incorporate BTC and blockchain to reduce costs and improve banking technology. The Netherlands is also a popular location for many important bitcoin conferences and bitcoin companies such as BitPay.
The Netherlands is increasingly becoming a prominent place for ICOs and blockchain related businesses to base their operations. “ “Country-by-Country Cryptocurrency Adoption
Well-known as the home of Nokia, Finland has constantly been at the forefront of technological innovation, just like its other Scandinavian neighbors. The Finnish Central Board of Taxes (CBT) has even gone as far as classifying bitcoin as a financial service, exempting it and cryptocurrency purchases from the VAT. What more could be better for Bitcoin?
Finland also boasts a significant number of BTC ATMs despite its small population. The capital of Helsinki alone is reported to have 10 ATMs for BTC. The country is also home to top exchanges such as FinCCX and As of January 2016, the most expensive bitcoin sale took place in Finland. It involved the sale of a Tesla Model S worth over €140,000 at Auto-Outlet Helsinki Oy.
Canada is home to a variety of bitcoin startups and ATMs. It is considered to be more favorable toward cryptocurrencies than the USA. The country has two cities on its eastern and western coasts, Toronto and Vancouver, that are recognized as “Bitcoin hubs”.
Canada has a vibrant cryptocurrency community and is home to startups such as Decentral, the Vanbex Group and a large number of merchants who accept cryptocurrencies as payment. Vancouver is known to have over 20 ATMs while Toronto is well-known for holding large cryptocurrency conferences.
There has been constant growth in cryptocurrency trading volume in the country. Canada might be the best location in North America to base an ICO or operate a blockchain business due to its supportive regulatory environment and a rich ecosystem for cryptocurrency, with human talent, ATMs and other tools, etc. “ “Country-by-Country Cryptocurrency Adoption
United Kingdom
The UK is one of the absolute top financial hubs in the world. It is also a center of innovation. There are a large number of bitcoin and blockchain related startups, BTMs and active communities. All of the previously listed crypto-friendly features make the UK a very desirable environment for bitcoin. The UK has identified the inevitable need for a new payment solution and is gradually bracing itself for a widespread adoption of cryptocurrency in the future. There are even a few local pubs that accept BTC as a means of payment.
It is also interesting to note that the Bank of England has been closely monitoring bitcoin technology and has requested ideas from citizens on the improvement of its monetary system. Bitcoin is presently seen as “private money” where VAT is imposed from suppliers of goods and services that accept cryptocurrency as payment. Profits and losses incurred from cryptocurrency trading are also subject to capital gains tax, just as in the US.
In the UK, it has become increasingly clear that BTC can be part of a bigger story, and the trading volume indicates steady growth. There are not clear laws against cryptocurrencies at the present time. But the lack of regulatory momentum suggests we may see more positive developments soon. One thing to keep in mind, while the Brexit is still in progress, the British government may be more likely to legislate on non-core issues. “ “Country-by-Country Cryptocurrency Adoption
The major banks in Australia have been quite hostile toward bitcoin, but at least the country has removed the burden of “double taxation” on cryptocurrency. This was good news to the local business community because blockchain startups had begun to leave the country as a direct result of unfavorable taxation and closure of bank accounts.
The use of BTC still remains unregulated, there is no law or regulation restricting the use of cryptocurrencies by Australian citizens. Cryptocurrencies are regarded as a form of property in Australia, and purchases with BTC, for example, are referred to as “barter”.
The Australian Securities Exchange (ASX), you will remember, is transitioning its CHESS verification system to a blockchain solution that should go live at the beginning of 2019. Cryptocurrencies in Australia are seen a lot like they are in the US. Topics like the imposition of capital gains tax, concern about securities law, the legal debate about using cryptocurrency as payment for goods and services, etc., are all problematic for regulators. While the general population is quite comfortable and supportive of cryptocurrencies and blockchain solutions, at the present it is not a high priority for the government to legislate or regulate. “ “Taxation and Cryptocurrency
Tax is of course one of the most important factors in financial matters on both a personal and corporate level. Taxes greatly influence investment decisions and returns, regardless of industry or size. It is one of the first things every individual or group considers before investing. Notably, in Australia and the USA, cryptocurrency gains are treated as capital gains and taxed at up to 50% of the return.
Some countries have low cryptocurrency taxes specifically to encourage the blockchain industry. By offering a more competitive tax rate, countries are implicitly supporting cryptocurrency and actively trying to offer a better return profile than other countries. We will discuss the different taxation regimes in a wide range of countries so you can ascertain the financial advantages and disadvantages of a variety of locations.
Belarus charges 0% in taxation until 2023. That exemption is specifically for cryptocurrency exchanges and transactions. This has been done to help Belarus build a special economic zone, referred to as ‘HTP Belarus’. Their goal is to have an economic zone strong enough to compete with the likes of Silicon Valley.
The government of Belarus has also declared smart contracts as legal documents. Anyone looking to set up a blockchain company or a cryptocurrency startup should seriously consider Belarus. It has a supportive regulatory and legal environment which actively encourages the blockchain industry and does not impose punitive taxes upon those inside the industry.
“ “Taxation and Cryptocurrency
Any and all personal income received from cryptocurrency transactions is tax-free in Portugal at the present moment. Income from cryptocurrency trading is categorized as something legally different from traditional income or capital gains.
The Portuguese government stated clearly that any kind of sale of cryptocurrency does not fall under capital income or capital gain. If an individual is however found to be carrying out professional activity, or any business activity related to cryptocurrencies, that is a different matter and such income will be subject to taxation.
From a personal perspective, Portugal is one of the leading countries where an individual can carry out their cryptocurrency transactions and enjoy a decent standard of living in the same country too. However, for ICO and Blockchain businesses it is not recommended to base your operations in Portugal.
China is famous the world over for being home to some of the largest cryptocurrency mines and many active cryptocurrency investors; yet at the same time China makes it illegal to conduct any cryptocurrency related business or investment.
But China still has an especially attractive environment for investors. Hong Kong runs on a policy of zero VAT or capital gains tax so it is easy to recommend you base your business there. Hong Kong also stands out as a major financial hub in the heart of Asia. “ “Taxation and Cryptocurrency
Actually, Netherlands was the first country to make use of a non-zero tax rate policy for cryptocurrencies. So, it may seem reasonable to expect a discouraging tax situation. But the fact is, Netherland’s tax policy is rather advantageous for cryptocurrency. They have a very simple, low-tax regime.
Cryptocurrency assets need to be declared with the total assets owned by an individual at the beginning of the year to assess their value. Cryptocurrency gains will be taxed at the highest tax bracket for capital income of just around 5%. The Netherlands is strongly recommended as a good country to work and live in, from both a personal and corporate perspective.
Germany is the economic center of the EU. This makes it a great place to start a cryptocurrency or blockchain company. Financial technology has been thriving there for more than ten years, and Germany has favorable cryptocurrency laws too.
Bitcoin and cryptocurrency assets have a 0% tax when used in making payments due to no VAT levied for making payments with BTC, because there is no “value added” through cryptocurrency as a fiscal product.
Germany offers a moderately compelling case for both blockchain business and individuals. While the tax rate on income at the company level is not competitive, the ability to pay for services in crypto as well as hold cryptocurrency assets and sell them at zero percent taxation rate is compelling. “ “Where to Base Your ICO
Let’s talk about the countries that are most accommodating with regard ICOs. Start-up ICO companies, like any company, essentially require three key principles for operation. The first is a sound legal and regulatory framework wherein the rule of law is preserved and business encouraged. The second is the ability to hire or acquire talented individuals to work at the firm. The third and final is the tax system and access to associated financial systems in order to allow the enterprise to succeed.
This country is, perhaps surprisingly, widely referred to as the most digital society in the world. Estonians are known to be pathfinders deeply involved in setting up an efficient, secure, and transparent internet ecosystem.
The country ranks first when it comes to the number of ICOs per inhabitant. It has an incredibly supportive tax regime, actually among the most competitive in the world, as well as a deep pool of talent across all areas of the digital spectrum. Estonia offers possibly the most supportive and friendly regulatory and legal framework in the world for an ICO. This, in combination with a zero percent tax rate at both a personal and corporate level, combine to make Estonia one of the single most appealing locations from which you can launch and operate your ICO. “ “Where to Base Your ICO
Singapore is another important regional hub in Asia for its strong rule of law as well as low taxation. The country offers one of the highest standards of living in the world. It is centrally located in the heart of Asia, so it easy to travel and recruit talent from surrounding countries. At the present there are not any specific regulations targeting the blockchain industry, but it is one of the world’s largest countries by funds raised for ICOs. It has a competitive tax regime in combination with strict AML and KYC. All of these factors make Singapore Asia’s leading location to launch and base an ICO.
The regulatory situation around the world may seem rather complicated. That is because it is. Laws and regulations are changing rapidly all over the world. And the regulatory framework is the most significant point of concern for a startup ICO. You should carefully study not only the current regulations surrounding your particular venture and how its tokenomics affects its classification, but you also need a reasonable sense of where the country is likely to be six months or a year later. Ideally you would base your ICO in a country that is supportive now, and all timeframes into the future with a competitive and legally sound tax system.
Where to Base Your ICO
Slovenia has recently transformed itself into the leading destination for blockchain technology in Europe. The government of Slovenia has placed a strong emphasis on the study of blockchain technology in public administration, and there has been an amazing success rate for ICOs in Slovenia. While the Slovenian government is a leader in terms of adopting cryptocurrencies, its rate of taxation is still considered quite high at 19%, even though that is still lower than other European countries. ICOs are considered to be normal business activities where you are taxed based on the funds received from an ICO less the expenses of doing business.
Switzerland is trying to remain relevant for the blockchain industry and for ICOs. The Swiss finance ministry is actively trying to attract investors to the country. Switzerland is considered a very important crypto location due to fact it was home to four of the largest ICOs in the world. The country is also very attractive to investors because of its friendly regulations and digital expertise. The taxation and regulatory environment is extremely secure and positive towards the cryptocurrency and blockchain industry in general.
Are there successful ICOs that have originated from the specific countries considered? Read the full article to get the answer!
Learn more about our STO and ICO marketing services right now! Contact me via LinkedIn: LinkedIn
submitted by UBAI_UNIVERSITY to u/UBAI_UNIVERSITY [link] [comments]

Announcing the first UK ISP to accept bitcoins

TandyUK Servers is one of the first UK Broadband ISP's to offer payment in bitcoin. Currently we can only process these orders manually, but are working on our portals to do this via our website.
Residential Package Prices are from £27.50/mo for ADSL2 and £35.50/mo for FTTC Including VAT.
Business Package Prices are from £35.99/mo for ADSL2 and £41.49/mo for FTTC Excluding VAT.
Business packages get network priority between 8am and 8pm Monday - Friday, Residential packages get priority 8pm - midnight Monday - Friday.
All prices will be converted to BTC at time of ordering.
Installation or Migration fees may also apply, but we will give you a full written quotation prior to ordering.
Renewal payment is required before expiry of your contract or the connection will cease automatically.
Contracts are fixed 3 monthly for adsl, or 12 month for FTTC, with full payment required up front if paying by BTC.
The whole process would be so much simpler if there were some way to do recurring monthly payments with bitcoin!
We can also provide full native IPv6 connectivity, PSTN Lines, FTTP if available in your area, Private WAN, Leased Lines and a range of enhanced care options to expedite resolution of any faults.
Anyone interested can contact us on 08444140340 or via our website, Note there is no mention of broadband on our website yet, I am currently working on adding a Line checker so you can see what speeds are available, and hope to have full online ordering available by the end of the month.
submitted by tandyuk to Bitcoin [link] [comments]

VAT on Bitcoin in Belgium

Hello! Belgacoin has just been informed by tax authorities in Belgium that Bitcoin exchange operations, in Belgium, are VAT-exempt. (like in the UK) For your information...
submitted by belgacoin to Bitcoin [link] [comments]

DRAGONS DEN BITCOIN CODE PITCH - THE TRUTH! - YouTube ACCA P6 UK  Value added Tax I Survived on Only Bitcoin for 24 Hours - YouTube New silver coins. VAT free silver! Bitcoin: Buying from a Bitcoin ATM Machine using cash ...

The UK's tax authority has scrapped plans to charge value added tax (VAT) on Bitcoin trading. In new guidance , HM Revenue & Customs also said it would not levy the 20% tax on the creation, or so ... When Bitcoin is exchanged for GBP or any other traditional currencies, no VAT will be due on the value of the Bitcoins themselves; Charges made in any form over and above the value of the Bitcoin for arranging or carrying out any transactions in Bitcoin will be exempt from VAT, under Article 135(1)(d), as outlined above Bitcoin is more of an asset or a stock than a real currency. This has consequences for VAT and tax treatment. The European Union now considers Bitcoin VAT exempt. In July 2015, it was announced that Bitcoin should also be tax-free within the EU since it is a means of payment. However, it may be possible for merchants to avoid VAT on Bitcoins when exchanging for legal tender, as they would be used as consideration for a VAT exempt item (money). Miners, investor/traders and exchanges selling Bitcoins may need to account for VAT at 20% if they are supplying taxable supplies in the course of business. It is anticipated that the UK's HMRC will announce that online crypto currencies such as Bitcoin will be reclassfied next week from a single use voucher to private currency for VAT purposes. This would exempt it from the 20% UK VAT net on each sale or profit margins, although exchange commissions would remain liable.

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In this video I give a general overview of tax rules for cryptocurrency in the UK. I also talk about specific common examples of different types of crypto acquisition and trading. Welcome to Bitcoin for Beginners. This episode I'll be showing the best way to buy Bitcoin in the UK with NO fees! (This is NOT a sponsored video) • Get $10 ... How To Buy Bitcoin In UK - Duration: 19:20. Crypto Mobster 5,794 views. 19:20. 95% Winning Forex Trading Formula - Beat The Market Maker📈 - Duration: 37:53. TRADE ATS 949,436 views. This lecture is brought to you by AccountancyTube To watch Latest Free lectures and to download Free lecture notes Please subscribe to our YouTube channel and visit In this video, I do a live bitcoin purchase from a Bitcoin ATM Machine using cash. This machine is from Coinsource and is located at 3663 S Las Vegas Blvd #4...