Cryptocurrency prices, charts and market capitalizations
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It determined that transactions to exchange a traditional currency for bitcoin or other virtual currencies and vice versa constitute the taxable supply of other services for consideration, but fall under the exemption from vat. It stated that bitcoin or other virtual currencies that are used simply as a means of payment are treated the same as traditional means of payment. Using bitcoin or other virtual currencies for no other purpose than as a means of payment is therefore not taxable. This guidance is in line with the european court of justice decision hedqvist from october 22, 2015. Virtual gaming money, meaning in-game currencies, particularly in online games, is not exempt, because it does not constitute a means of payment within the meaning of vat law. The ministry also addressed several follow-up questions regarding the taxation of mining, digital wallets, and online trading platforms.
The superintendencia financiera of colombia warned in a june 2017 circular that bitcoin is not currency in colombia and therefore may not be considered legal tender susceptible of cancelling debts. The sf further emphasized that the colombian peso is the only legal currency, Buy Innosilicon A10 Pro Eth Master and that the banco de la república has the exclusive authority to issue money in colombia.
The ato has published a guidance document on the tax treatment of virtual currencies. The general guidance follows the finalization, in december 2014, of various rulings relating to the application of tax laws to bitcoin and other cryptocurrencies.
It typically does not exist in physical form and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to centralized digital currency and central banking systems. When a cryptocurrency is minted or created prior to issuance or issued by a single issuer, it is generally considered centralized. When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database. Specifically, these guidelines provide that since vcs are not backed by a central bank or a particular commodity and are not guaranteed by any country, they are not legal tender. However, since they are used as a conduit to provide certain financial services, such as remittances and payment transactions, entities that provide such services using vcs must register with the bsp and adopt adequate measures to mitigate and manage risks associated with such currencies. In addition, the guidelines provide for penalties applicable to vc entities that conduct operations without the appropriate authorization from the bsp.
It stated that virtual currencies are generally defined as a “digital representation of a value that is neither issued by a central bank or a public authority” and do not constitute fiat currency . However, it is pointed out that virtual currencies are similar to fiat currencies when they are used as a means of payment or traded on an exchange. The production and the use of virtual currencies as a means of payment are currently not subject to any licensing requirement governed by specialized legislation. However, the fma states that depending on the specific design of the business model, licensing requirements might apply. In particular, due diligence requirements according to the due diligence act may apply. Also in february 2018, the german federal ministry of finance published guidance on value-added-tax treatment of bitcoin and other virtual currencies.
