A petition was launched in Poland by cryptocurrency traders in order to protest the Government’s decision to tax all the crypto transactions.
So The Government of the Republic of Poland limited access of Poles to the perpetually growing market of cryptocurrencies, without consulting any of the parties. As a result of these tax regulations, Polish cryptocurrency traders say that many people will lost their capital. The money they had invested in cryptocurrencies will be taxed “hundreds or even a thousand times“.
“There is no doubt that the blockchain technology and its applications are another of the revolutions, similar to the one that the Internet has given us. As Poles, we are demanding the release of the blockchain technology market and the abolition of all taxes related to this industry. We want to be active creators of this technology, not just its passive recipients in the coming years, from centralized Polish institutions or foreign entities” .
At the moment the petition has already been signed by 3,000 people, according to the Change.org petition.
Furthermore, the Poland’s Finance Ministry published his interpretation of the tax regulations: all income from cryptocurrency transactions are now subject to either an 18% or a 32% tax rate. There was quite a brouhaha. But what really disrupted the crypto community was the Government’s persistence that merely selling or buying virtual currencies is a “transfer of property” that is automatically subject to a 1% tax. So, in other words you owe taxes on a crypto trade even when you lose money.
Polish prime minister Mateusz Morawiecki has tried to discourage Poles from participating in the crypto market by combining bitcoin and other digital coins as “Ponzi schemes.” However, the Government recognises that blockchain technology can be a useful innovation with the potential for broad applications in the banking industry.
Meanwhile, other countries are thinking to tax crypto transactions. So Poland is not an isolated case. For example, in the United States of America the Internal Revenue Service (IRS) reminds americans that their capital gains on crypto transactions will be subject to a tax.
Also in South Korea the Government is planning to disclose a crypto taxation from June 2018.
We will see what is going to happen.