Last updated on January 2nd, 2018 at 12:00 am
Bitcoin has taken another important step towards general recognition in Europe. Germany is the first country to announce an official position regarding the status of Bitcoin as money. The cryptocurrency was acknowledged as a “currency unit” and “private money”, reported the German newspaper Die Welt.
In other words, this nomenclature means that some commercial profits on Bitcoin related endeavors may become taxable, although the personal use of the currency will remain tax-free, as stated by the newspaper.
This position is not completely new, since Berlin has been one of the leaders of this crypto-process: the government has already pronounced about Bitcoin as a taxable investment before and let’s not forget that Kreuzberg is the neighborhood with the highest density of businesses accepting cryptocurrency.
But now this recognition, which was laid out in a Finance Ministry response to a query from the well-known member of the parliament’s Finance Committee Frank Schaeffler, brings virtual currency to a whole new level in the country. According to Schaeffler, “for the first time, the federal government recognizes Bitcoins as private money“.