Austria to ‘reduce mistrust, prejudice’ in crypto by treating it like stocks

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The crypto-market’s cumulative market capitalization surged past $3 trillion recently. Understandably, many countries have been taking cryptos seriously, with Austria being one of them. The country has now announced major tax changes, according to a report by Bloomberg.

Under the new rules, Austria is set to treat cryptocurrencies just like stocks and bonds. While this is also expected to build investor confidence in the asset class, the country’s finance ministry said,

“We are taking a step in the direction of equal treatment, to reduce mistrust and prejudice toward new technologies.”

Under the proposal, 27.5% capital gains shall reportedly apply on investments made in digital tokens like Bitcoin and Ethereum from March 2022. It is noteworthy that the tax will apply only when the assets are sold. Also, the new Austrian cryptocurrency tax will not apply to digital tokens purchased before the proposed implementation date next year.

Meanwhile, short-term tax is already applied on the holdings held for a period of 12 months or less. Investors can also take benefit of potential losses while selling their holdings as shares have the provision of available tax loss carry-forward.

What is the rest of the EU up to?

In doing so, Austria is perhaps the first country to bring such sweeping changes in the European Union.

Other countries in Europe have varying tax regimes. In Switzerland, for example, cryptocurrencies are subject to wealth tax.

Earlier…

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