Regulation in Europe

Hey Litecoiners!
Let’s talk about the crypto regulations in EU.
As the start, any idea about the tax regulations? Any idea about the exchange regulations?


What are the regulation bodies in Europe? As far as I know, there are three relevant authorities?

  • FATF
  • European Union
  • European Convention on Human Rights
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I think it is way complicated than that. Specially when it comes to the federal model.
For example German Federal Financial Supervisory Authority (BaFin) is the responsible for the cryptocurrency regulation but in other hand each Bundesland( state) also has its local regulation.
Since crypto currencies count as substitute currency does not require a license and every businesses can accept crypto currencies without any licensing in Germany wich makes it somehow the Heaven of crypto currencies but in other hand if you are entitled to tax payments in Germany ( steuerpflichtig) you have to pay a heavy tax( sometimes up to 48 percent) on your income.
Also if you dedicate your financial activity to crypto currencies like mining pool or exchange you definitely need a BaFin license which I believe it is not very easy to obtain!
Also it becomes more complicated when a business does not accept the cryptos Directly but through a gateway or a provider which is not located in Germany and has no BaFin license!
If you want to start any kind of Crypto activities inn Germany i strongly recommend to talk with a lawyer( Anwalt) and a tax adviser ( Steuerberater und Wirtschaftsprüfer) .
I would say there is definitely an open field in Germany, but you have to educate your self first. And by saying educate yourself I do really mean it.
Any experience about the other members of EU?


Do you have pointers to those requirements in Germany, which could help others quite a lot?

I think this link helps a lot


Interested to learn more about the topic in France and UK - Do you have more sources ?
Just launched a company around Blockchain (called Blockchain Collective) and would need more info for my users! Thanks

Recently I’ve read some article on the soft-fx blog, hackernoon, news.bitcoin (can’t add links to articles) for that theme.
Shortly crypto-friendly countries for 2021 (cryptocurrency and crypto business allowed): Luxembourg, France, Finland, Estonia, Switzerland, Cypris, Malta, Belarus. 9 of 50 countries, not so much.

Hope situation becomes better, in the next couple years.

You can add the Netherlands to that list

If you exchange in Germany between two currencies you actually hold, then you will have to pay 24% tax on that exchange… if you change from one of your HODL coins to another you dont hold, and THEN back to the other you hold, there will be no tax … lolz …

Luxembourg, France, Finland, Switzerland, Estonia, Cyprus, Malta, Belarus - most crypto-friendly countries in Europe. mean that cryptocurrency and crypto business allowed.

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There is article, where I am reading this info:

As regulations tighten and crypto becomes more trackable, we really need to learn to tighten our game!

I don’t know what their supposed advantage is but Belarus is a pariah country according to those who control the international monetary system.

Analyzing what you have cited, will it be an obstacle to the development of LTC and MWEB? :thinking:

To arm a Crypto company in the EU is at present not advisable special if you have little movement.
Should you have the size of a bank even a local small one all will work out. With Brexit the UK is the best place to form a LTD and start from there.

As a user who would have his/her token non registered the use of VPN, TOR is minimum.

Over the past two years, EU legislation has been greatly expanded regarding cryptocurrencies. As far as I know, many cryptocurrency companies are registered in the USA. Personally prefer to conduct all my transactions through Bank of America.

TOR or any VPN isn’t going to help because the KYC (and therefore the regulations) are attached to the fiat based entry and exit points - ie: crypto exchanges.

Also country of residence / connection is a major factor so using a VPN may well be counter-productive.

The alternative not being able to use Crypto is the result of not even trying. Am I right?