Cryptocurrencies

Poland plans to tax all cryptocurrency transactions amidst protest from traders

Plans proposed by the Polish government to tax all cryptocurrency transactions, even if they are not profitable have been met with anger from crypto traders. The decision has so far resulted in a petition from the crypto community that argues that they ‘are demanding the release of the blockchain technology market and the abolition of all taxes related to this industry’, according to CCN.

The ruling itself follows on from publishing’s by the Polish Finance Ministry last week which detailed an interpretation of the Polish tax code, in which all income from cryptocurrency transactions within the country is viable to an 18% or 32% tax rate. Those transactions spread as far as covering the act of buying or selling currencies and has lead to further anger from the community. It has been argued that the new moves will mean that any capital invested in cryptocurrencies is likely to be taxed hundreds of times.  It has been reported that the decision comes alongside the Polish PM Mateusz Morawieckis ongoing attempts to deter his country’s citizens from investing in cryptocurrencies, arguing they constitute a ‘Ponzi schemes’.

The move signals a further attempt by authorities around the world to impose regulations upon the cryptocurrency realm and an extended the level of control they maintain. However, it is not the first country to tax cryptocurrencies and such methods tend to vary depending on a series of factors. For instance, there is an abundance of different taxes that are imposed upon Bitcoin such as VAT, GST and CGT depending on the regulations of different countries and whether they see the currencies at an asset, a currency or a commodity. The key frustration with this new ruling however means that even if traders are losing money, the process is still recognised as a ‘transaction’ and thus will be subject to a tax as well.

According to Bloomberg, the community predicts that the ruling would ‘wipe out’ their Polish trading sphere and serves as a step backwards in a setting where blockchain and cryptocurrencies are becoming increasingly important, especially through its links to the normal trading avenues. The dispute between Polish officials and the cryptocurrency traders continues and it remains unclear

About the author

Tamara Davison

The Medellin-based Mancunian started her journalism career in a London startup and has since travelled around the globe covering arts and culture news, as well as climbing the Himalayas and being lost in remote places. She claims her knowledge of Bitcoin is a healthy obsession that she picked whilst studying the fascinating repercussions new technology has around the world.

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Author

Tamara Davison

The Medellin-based Mancunian started her journalism career in a London startup and has since travelled around the globe covering arts and culture news, as well as climbing the Himalayas and being lost in remote places. She claims her knowledge of Bitcoin is a healthy obsession that she picked whilst studying the fascinating repercussions new technology has around the world.