Germany recognizes Bitcoin as tax-free private money
Bitcoin, the online currency, has been recognized for legal and tax purposes in Germany, making it the first country to take an official stance on the status of using it as money. Virtual coins has been recognized as an unit of account, member of parlament’s Finance Committee Frank Schaeffler claimed on his webpage.
According to the RT News, the classification means that some commercial profits on Bitcoin related endeavors may be taxable, but personal use of the currency will remain tax-free. "For the first time, the federal government recognizes Bitcoins as private money," Schaeffler said.
Bitcoin has been a popular form of payment around the globe since it was first introduced in 2009, as people became dissatisfied with the conventional banking system. Meanwhile, the currency’s viability has been questioned because Bitcoins are backed by neither a government nor a central bank.
In July, the first trading platform for Bitcoins in Europe with direct cooperation with a bank regulated by the Financial Supervisory Authority was set in Germany. Bitcoin Deutschland GmbH agreed to convey Bitcoins on its platform as an intermediary through the German web 2.0 bank Fidor, reported RT News.