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Germany recognizes Bitcoin as ‘private money’

 Berlin has acknowledged the virtual tender as a "currency unit" and "private money," according to German newspaper Die Welt.

The classification means that some commercial profits on Bitcoin related endeavors may be taxable, but personal use of the currency will remain tax-free, the paper reported.

The recognition was laid out in a Finance Ministry response to a query from Frank Schaeffler, a member of parliament’s Finance Committee.

"For the first time, the federal government recognizes Bitcoins as private money," said Schaeffler.

In July, the first trading platform for Bitcoins in Europe with direct cooperation with a bank regulated by the Financial Supervisory Authority was set in Germany. Bitcoin Deutschland GmbH agreed to convey Bitcoins on its platform as an intermediary through the German web 2.0 bank Fidor.

1 Comments in Response to

Comment by Ed Price
Entered on:

Okay, let's all go into private business so that it is personal use of Bitcoin. I mean, you don't need a shingle, these days, what with the Internet and all. So why use "their system" of business that taxes you? Rather, do it personally with Bitcoin so that you are outside their taxing requirements.