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› › Bitcoin: Germany grants BC legal status as private money
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Bitcoin: Germany grants BC legal status as private money

skaska Member
edited August 2013 in General

Just to let you know: Germany has granted Bitcoin the status as private money. The Federal Ministry of Finance makes it therefore possible to pay using Bitcoin with legal and taxational certainty within Germany.

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Comments

  • DewlanceVPSDewlanceVPS Member, Patron Provider
    edited August 2013

    wow!!


    I hope also bitcoin will be legal in my country(Financial officers don't know how to operate computer so they will take a 5 to 10 years or 100+ years)

  • RichardLeikRichardLeik Member

    What does this mean, exactly? I don't think it was illegal to pay with Bitcoin before.

    Thanked by 1c0y
  • AmfyAmfy Member

    @DewlanceVPS Just sell them some proper autoboot ;)

  • skaska Member

    @RichardLeik said:
    What does this mean, exactly? I don't think it was illegal to pay with Bitcoin before.

    Without this legal act you could run into problems legal and tax-wise. Money laundering and tax evasion are federal crimes in Germany. However, since Bitcoins are now considered as private money (debtures between private entities) and you have to pay taxes on Bitcoin income etc. this legal uncertainty is abolished.

  • NeoonNeoon Community Contributor, Veteran

    Nice

  • qhosterqhoster Member

    more taxes ?

  • qhosterqhoster Member

    jails are almost full anyways :)

  • DroidzoneDroidzone Member

    @Zen said:
    less jail time

    Only less? :p

  • RichardLeikRichardLeik Member

    Does that mean the German government is accepting Bitcoin tax payments? Won't the currency's fluctuations make it difficult?

  • skaska Member
    edited August 2013

    @RichardLeik said:
    Does that mean the German government is accepting Bitcoin tax payments? Won't the currency's fluctuations make it difficult?

    No: private money!=official tender. Towards the state you have to pay taxes using the Euro. However, between private parties you are allowed to use Bitcoins. When it comes to taxation on winnings/losses on foreign exchange with Bitcoin, Bitcoins are now considered as foreign currency. This gives to a quite good certainty taxwise: Earnings with bitcoins are considered as normal taxational situations, like with any foreign currency.

  • WilliamWilliam Member

    @Zen said:
    Looks like it's going to be so confusing they will probably just ignore it and it'll become a grey area. If you file taxes for 10 bit coins at 100 each and by the time they review that information the cost of a bit coin is 200 each, it's going to become confusing. They would need to use some form of market history information to confirm that you are not simply lying about the value of a bitcoin when filing taxes.

    huh? YOu fill your taxes in EUR, you just add that the currency was BTC before.

    Nothing is done directly in BTC.

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