More and more people in Serbia are ready to invest in cryptocurrencies. However, how is their trade legally regulated and what are the taxes?
After the great economic problems that the pandemic caused to the Serbian economy, more and more people are turning to alternatives that can bring financial stability. This is probably one of the reasons why cryptocurrencies have become so popular in Serbia. Therefore, the competent authorities had to pass laws that would regulate this type of earnings.
What can people use cryptocurrencies for?
Cryptocurrencies are probably still unknown to some people, so it is important to note how they can be used. The first and foremost way to make money is to invest and trade. The goal of every investor is to buy cryptocurrencies whose price is low and which have the prospect of strengthening in the future. Therefore, selling those same tokens would bring in profit!
Of course, this is not the only thing people can do for Bitcoin and other alternative cryptocurrencies. People can also use them to buy various products. Truth be told, the number of online stores in Serbia that accept this method of payment is extremely small (almost non-existent). However, abroad, that number is extremely large and is starting to grow more and more.
In addition to buying products, people can also try their luck at some of the betting sites with so-called crypto-payments. Some of the casinos that consider cryptocurrencies legitimate have been analyzed on sites such as najboljiionlinekazino.com. If playing roulette, poker, and other games with cryptocurrencies seems interesting to you, it might be a good idea to visit that site after reading this article.
What is the Digital Property Act?
Cryptocurrencies in Serbia have never been completely illegal. However, it is important to note that they were legal solely because no act of law prohibited them. That is why this way of trade has long been a kind of gray zone. This trend stops after the Digital Property Act is passed.
This law primarily defined certain terms, for example, digital assets are defined as “a digital record of value that can be digitally bought, sold, exchanged and transferred”. In addition, the law itself states that this type of property can be exchanged for investment purposes. What is important to note is that the very term “cryptocurrency” is not mentioned anywhere in the law, but still most people have experienced this law exclusively dedicated to them.
The Digital Property Act deals with two types of digital property. These two types are digital tokens and virtual currency. At first glance, these two things seem identical, but, according to this law, they represent completely different things.
Digital tokens are defined as a type of alternative financing for young people, as well as innovative companies and startups. On the other hand, virtual currencies (including Bitcoin and other alternatives) are considered by law to be innovative means of exchange that exclude central banks around the world (this is one of the reasons why transactions are faster, cheaper or even free, etc.).
How is the tax regulated?
The state has decided to regulate the taxation of all modern jobs and types of earnings. In October 2020, the tax administration decided to introduce freelancers into the tax system. However, the Ministry of Finance did not stop there, so investors and traders found themselves in a similar situation.
The Law on Digital Property decided that the tax rate on capital gains is 15%. For example, if you bought a cryptocurrency for 250 euros and sold it for 450 euros, you would have to pay 15% on the 200 you earned (relative capital gain).
Can anyone provide services related to digital assets?
Thanks to the law that was passed, such a thing will be made possible only to licensed service providers. As already mentioned, this type of service has not been banned so far, but it has not been regulated either. However, the authorities say that this is normal with any kind of innovation. It has happened many times that certain innovations exist, but they will be legally recognized only later.
If you want to get a license, you will have to contact the National Bank of Serbia or the Securities Commission. This directly depends on what kind of service you want to do. If a person needs a license for Cryptocurrencies, they will have to contact the National Bank of Serbia. On the other hand, the Securities and Exchange Commission is in charge of digital tokens.
Reasons why these regulations were passed
Although many who were not obliged to pay taxes will complain about the adopted laws, there is a positive side that is important to analyze. The law itself increases competitiveness and demand in the global market. This is one of the factors that affects the cover of all cryptocurrencies in the world. In addition, many individuals have used a loophole in the law to launder money. However, thanks to this law, that option is no longer possible.
Of course, although at first glance it does not seem so, the law protects individuals who are willing to become investors. For example, exchange offices where people will be able to convert crypto earnings into ordinary money will no longer be able to operate without a license. If the user is deceived in any way, the licensed companies that provide this type of service will have to answer before the law.
Conclusion
If you decide to invest in cryptocurrencies, we advise you to improve your knowledge of your field. Under no circumstances should investing in cryptocurrencies be considered a form of easy earnings. This is a turbulent industry where things change from hour to hour, Juzne Vesti reports.
