On 28 February 2023, the Federal Fiscal Court (BFH) made the decision that profits derived from buying and selling cryptocurrencies are now liable to income tax. The court not only confirmed a speculation period of one year but also asserted that virtual currencies, recognised as economic goods with market value, traded as a means of payment on various platforms, fall under the purview of the Income Tax Act as "private sales transactions".
In contrast, January 2023 saw the UK introduce a tax exemption for foreign investors who acquire crypto through local investment managers or brokers. Simultaneously, the Financial Services and Markets Bill, undergoing parliamentary debate, proposes to empower local financial regulators with increased authority over cryptocurrencies if it becomes law. Moreover, the UK Treasury plans to initiate consultations in the coming weeks to explore regulatory measures for the cryptocurrency industry.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now