​​Legal aspects of crypto investments

The legal regime of cryptocurrency, in particular Bitcoin, varies considerably in different countries. In a number of countries, operations with cryptocurrencies are officially authorized. Usually they are treated as a commodity or investment asset and for tax purposes are subject to the relevant legislation. Sometimes Bitcoin is recognized as a settlement currency (for example, in Germany and Japan). In other countries (for example, in China), operations with digital assets are prohibited for banks, but allowed for individuals, while China is the leader in the field of mining due to the presence of the greatest production capacity. In Switzerland, cryptocurrencies are subject to the same rules as foreign currencies, and this country is one of the most favorable jurisdictions for Bitcoin startups and public blockchains. There are no restrictions on the use of Bitcoin in Russia for 2017.


European Union

On October 22, 2015, the European Court of Justice ruled that exchanging bitcoins for fiat currencies is exempt from VAT. The court decision states that the VAT law applies to the supply of goods and the provision of services. Transactions in bitcoins were classified as payment transactions with currencies, coins and banknotes, and therefore are not subject to VAT. The court recommended that all EU member countries exclude cryptocurrencies from the number of assets subject to taxation.

Germany

At the end of August 2013, the Ministry of Finance of Germany made a statement that Bitcoin could not be classified as electronic or foreign currency, but rather the definition of private money, through which multilateral clearing operations can be performed.

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