Finland is located in Europe (EU): The countries of the European Union hold a patchwork of individual attitudes towards cryptocurrency regulation, but all of them also fall under the jurisdiction of the EU Commission.
Cryptocurrency trading in Finland
The Finnish Tax Administration has issued instructions for the taxation of virtual currencies, including the bitcoin, which is considered a private contract equivalent to a contract for difference for tax purposes.
Purchases of goods with bitcoin or conversion of bitcoin into legal currency “realizes” the value and then any price increases are taxable. Mined bitcoin is also considered earned income.
Additionally, ruling 034/2014 by the Finnish Central Board of Taxes (CBT) has stated that commission fees charged on bitcoin purchases by an exchange market were VAT exempt.
In January the EU came out with new directives on cryptocurrencies, asserting that “gaps still exist in the oversight of the many financial means used by terrorists, from cash and trade in cultural artefacts to virtual currencies and anonymous pre-paid cards. This proposal seeks to address those gaps while avoiding unnecessary obstacles to the functioning of payments and financial markets for ordinary, law-abiding citizens and businesses, so balancing the need to increase security with the need to protect fundamental rights, including data protection, and economic freedoms.”
Mostly focused on ending anonymity among the crypto community, and preventing nefarious individuals from buying, funding, or selling orgs or resources. It does include the sharing of company and individual information with public entities at times, and affects exchanges and wallets.
Regulation of ICOs in Finland
On Nov. 22, 2017, Finland’s Financial Supervisory Authority (FSA) issued a warning that initial coin/token offerings (ICOs/ITOs) and cryptocurrencies are risky and highly speculative investments.
They consider cryptocurrency commodities. There is likely to be further regulations as EU rules are implemented.
Cryptocurrency markets in Finland
Finland has a surprisingly robust crypto community with a number of exchanges, start-ups, and even has used blochain to help create sustainable finance for refugees.
IBC’s planning and strategy team can provide expert advice on ICOs in different jurisdictions. If you’re thinking of holding an ICO in COUNTRY and you’d like more information, contact us here.
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