Granted the volatility of the crypto sector alongside the ongoing Initial Coin Offering trend, numerous countries throughout the world are now pursuing legislative means for protecting investors, while also taxing crypto-companies.
Facilitating a Safer Environment for Crypto Investors
Recent reports indicate that the Lithuanian Ministry of Finance has issued a guidance paper for ICOs operating within the country. The guidelines are meant to facilitate a safer environment for crypto investors, while also ensuring that regulatory, accounting, taxation, anti-money laundering requirements are met by alt-asset holders.
In a recent press statement, the Lithuanian Minister of Finance mentioned:
“We are one of the first ones in Europe who prepared comprehensive Guidelines on the legal framework for ICO projects covering regulatory as well as taxation and accounting.”
To put things better into perspective, the guidelines mostly focus on ICOs that offer investors profits and governance rights. Additionally, ICOs are classified based on their characteristics so as to determine which set of laws they ought to follow.
The document also mentions that the Bank of Lithuania will serve as a market regulator:
“The Bank of Lithuania acts as a regulatory authority of financial markets in the Republic of Lithuania. Only the entities that are planning to provide regulated financial services and (or) projects which have released tokens that have characteristics of securities will be under its scrutiny.”
The official paper ends by stating that all income coming from the individual purchase or sale of digital currencies will be taxed according to the 15% standard fixed income percentage. Tokens that fit the securities criteria coming from ICOs will not be subject to the VAT tax.
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