Weekly News Update
Germany won’t tax Bitcoin payment deals
According to the decision, issued by the German Federal Ministry of Finances on Feb. 27th, Bitcoin is now not taxable in Germany as it is used as a means of payment.
The decision contains a quote from the European Court’s decision from 2015 about a value added tax, which also lets every EU country define cryptocurrencies either as a currency or a commodity.
Germany now officially defines Bitcoin as a currency: “So-called virtual currencies (cryptocurrencies such as Bitcoin) are considered equal to the legal means of payment, as long as these so-called virtual currencies have been accepted as alternative and contractual means of payment by the parties involved in the transaction and have no other purpose than being used as a means of payment.”
Venezuela will educate citizens about cryptocurrencies
While we’re all chatting about how a proper IT and crypto education is desperately needed, the government of Venezuela opened a school in Caracas, where classes on buying, selling, mining cryptocurrencies will be teached. Of course, the main subject would be El Petro, the national oil-backed cryptocurrency. The school is free for Venezuelans.
Also, the country’s president urged universities across Venezuela to install mining farms, in order for young students to get as many possibilities to mine, sell and buy crypto as they actually can.
The situation with El Petro is still quite controversial. Nicolas Maduro claimed that so far the government raised the equivalent of $1 billion in cryptocurrency, and even announced another El Petro — called “gold” and backed by, of course, gold.
Another European national cryptocurrency — e-franc
Swiss stock exchange chairman, Robert Lacher, brought some thrill from a traditional financial market, saying that a national cryptocurrency — allegedly, called “e-franc” — would stimulate Switzerland’s economy.
A state-administered cryptocurrency would create a lot of new possibilities and “synergies”, which would also strengthen country’s leadership in a new technology adoption.
According to Lacher, the best way for e-franc to be developed is to be backed by central bank. In response to what the head of Swiss stock exchange said, the Swiss National Bank stated that there’s “no need” in creating a national cryptocurrency.
Lacher confessed that he didn’t like cash at all.
35 nations and EU to work on AML policies and global crypto standards
Another positive news come from the Financial Action Task Force meeting in Paris, an intergovernmental organization combating money laundering worldwide. Members representing 35 countries “urged the global body to improve the understanding of money laundering risks relating to cryptocurrencies”. Member countries were worried that the anonymity and money laundering risks of cryptocurrency transactions had grown with electronic wallets”. The committee agreed to revise international standards and make a report by the G20 Finance Ministers’ Meeting in March.
