Austria’s social tax reform proposes a 27.5% tax on crypto-related gains. The authorities are convinced that this would enhance trust in the crypto space. The proposal is a reaction to last month’s presentation to the legislature. The rising popularity in the virtual asset sector has prompted various Austrian territories to become more interested in a crypto tax policy. Austrian authorities have been making efforts at reforming its tax policies. Hence, the proposed crypto tax law could be effected before the middle of next year.
Enhancing Equality Between Investors
If the policy is executed as planned, the authorities expect that there will be no partiality among investors since there would be rationalization between the available digital currencies. Furthermore, this policy will be hugely beneficial for the EU. The finance minister opined that the government chose to guide blockchain tech development to avoid investors losing their investment and trust in the nascent industry.
A side benefit of the income tax gains is that it would add to the available resources budgeted for further development of the country. However, it is noteworthy that this policy will not be affected when investments are bought. It will only be implemented when they are sold. There is already a 55% tax on investments held for over one year. But if the gains from a speculative investment don’t exceed 440 euros, the tax law won’t be applied to it.
Investor Protection
Part of this policy remarks that those who swap one token for another won’t pay any tax. Instead, they will even be compensated when they make a loss when they sell their tokens. Crypto taxes differ from one country to another. This crypto tax law in Austria is different from what obtains in other EU countries.
But the Austrian authorities are convinced that it is the best move, and other EU countries will soon imitate them. While Austria’s crypto tax policy might be a yardstick for other EU countries, most of them lack clarity on developing a suitable one for their citizens. For instance, French authorities only tax crypto-fiat transactions. Even some countries don’t subject gains on virtual assets to any tax unless they are considered speculative.
Crypto M-Cap Hits $3 Tr. Mark
Coingecko data shows that the overall evaluation of the crypto market exceeded $3 trillion for the first time. This record comes on the back of new all-time highs set by BTC and ETH. The overall evaluation of the crypto market has surged astronomically over the past 12 months. It has grown from $500B late last year to its current valuation of more than $3 tr.
The performances of the top coins mean there aren’t any significant changes to the top 12 digital assets. BTC is still responsible for 43% of the entire crypto market cap at about $1.3 tr., while ETH comes second with a 20% share of the entire market cap at more than $580B. The market cap of these two digital assets means they account for at least 60% of the entire crypto market cap.
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