Are Cryptocurrencies Legal And What About Taxes?

Cryptocurrencies are generally legal. Buying, holding and selling a cryptocurrency is generally not against the law. Mining is also legal. However, there are a few things to consider when it comes to taxes.

There is no specific cryptocurrency tax. Instead, cryptocurrencies fall under private sales transactions. They are put on the same level as works of art, real estate or antiques. Under certain circumstances, there are no taxes when trading cryptocurrencies.

For example, the sell-off period. If you only hold a cryptocurrency for more than a year and do not sell it, after this year the taxes on the profits from the sale do not apply.

There is also an exemption limit. If the winnings fall below this exemption limit, the amount also remains tax-free. The exemption limit is currently 600 euros. This exemption limit applies to all sales of the cryptocurrency.

Even if the profit should remain tax-free, the sale transaction must still be recorded in the tax return. In general, there are a few uncertainties when it comes to the tax registration of cryptocurrencies. If in doubt, you should contact your tax office. So you are on the safe side.