Austria taxes Bitcoin and becomes a pioneer for the crypto market
Austria taxes Bitcoin and becomes a pioneer for the crypto market
Crypto

Austria taxes Bitcoin and becomes a pioneer for the crypto market

By Fabiana D'Urso - 12 Nov 2021

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A recent report by Bloomberg suggests that Austria may charge taxes on investments in Bitcoin and altcoins from next March.

Austria, Bitcoin as a legal financial investment 

This financial regulatory procedure would bring both cryptocurrencies and traditional bonds on the same level as far as investments are concerned.

The direct approach would lead Bitcoin to be considered as an equity investment.

The Austrian manoeuvre would create a fair relationship between different investments (be it cryptocurrencies or simple bonds) by imposing a single capital gains tax of 27.5%.

The intention behind this Austrian institutional decision is to increase the population’s interest in new technologies.

The process of approving equal digital movements would make Austria one of the first European countries to adopt such a tax application.

Austria

Cryptocurrencies and government taxation

According to government indications, the new tax regime will only be applied to cryptocurrencies when the tokens are offered for sale. Whoever exchanges (sells for later purchase) cryptocurrencies will be exempted from having to pay taxes on the transaction. 

Austria is not the only country that is moving towards tax regulation of decentralized digital assets.

Although the government has admitted to a pioneering plan in Europe, there are currently many countries looking in the same direction.

The central point, the pivot on which a tax balancing plan is being pursued, is precisely the continued growth of the global crypto market resulting in a total capitalization that has approached $3 trillion.

Bitcoin and global regulation

Not only Austria but also countries like Indonesia are considering fair taxation for those trading in cryptocurrencies.

Even South Korea, which is in different waters, is trying to propose taxation of around 20% on gains made through trading digital assets.

Austria does not appear to be the only country that has realized that the global economy is shifting to other dimensions. Many countries are considering, through financial review plans, the possibility of implementing the digital asset market within the institutional strand.

And while America struggles with increasingly critical inflation, the crypto people continue to advance unabated.

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