Bitcoin becomes “private money” in Germany
Germany has recognized Bitcoin as “private money”, making it the first country to accept a cryptocurrency as a “currency” according to reports in Die Welt. The decision opens the way for broader acceptance of Bitcoin while raising the possibility of taxation and other forms of financial regulation. The decision means that while personal use of the virtual currency will be tax-free, commercial enterprises using Bitcoin will be taxed. The decision was part of the German Finance Ministry’s response to a query from Parliamentary Finance Committee member Frank Schaeffler. “For the first time,....
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An official statement out of Berlin is one big step toward legitimacy and acceptance for Bitcoin. Germany’s Ministry of Finance is on record acknowledging the digital currency as “private money” and a “currency unit,” meaning it’s something that can be taxed when used in commerce but not as a personal asset. Germany is in an especially interesting position to deliver the first official proclamation from a world government, as its economy is seen by many as the linchpin in the Eurozone. The acknowledgement on its part could be a good sign for Bitcoin users throughout the EU. Bitcoin has....
Back in August, Germany became the first country in the world to recognize Bitcoin as “private money.” Note this is not the same as legal tender. This, perhaps above all, is seen as legitimizing Bitcoin’s image worldwide, where prevailing narratives before mid-2013 or so focused on Silk Road and money launderers. In Germany itself, Bitcoin spenders and businesspeople are now free to engage in digital commerce without the fear that their activities put them on the wrong side of the law. But this designation has further implications in Germany and Europe. First, the currency’s decentralized....
Norway’s director general of taxation has said that Bitcoins “don’t fall under the usual definition of money or currency.” Instead, the richest country in Scandinavia will consider Bitcoins as assets and thus impose capital gains tax on Norwegian holders. This comes four months after Germany classified Bitcoins as “private money” that are nonetheless taxable. In the meantime, Christian Holte, the above-quoted director general of taxation, said the Norwegian government would coordinate certain legal implications of Bitcoin with other governments. “If there’s a crisis or power outage, you....
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Berlin has long been seen as something of a hub of bitcoin activity, but Germany as a whole has lagged slightly behind the UK in terms of bitcoin popularity... until now. For the first six months of the year, the UK was home to a higher number of downloads of the original bitcoin client (Bitcoin-Qt) than Germany. Since then, Germany has taken the lead, with 19,248 Bitcoin-Qt downloads taking place in the country from 1st July to the time of writing, compared with 16,826 in the UK. Those based in Germany have also been giving CoinDesk more attention over the past few months. In June and....