Crypto Assets are Focus of Upcoming Exchange of Information - DAC8

Cryptocurrencies or crypto assets are digital assets that are exchanged between peers without the need of a third party such as a bank. This enables consumers to digitally connect directly through a transparent process, showing the financial amount, but not the identities of the people conducting the transaction.

Since the creation of Bitcoin in 2008, numerous new cryptocurrencies with different features have been created over the years. The total market capitalization of the crypto market recently exceeded $1 trillion, with Bitcoin representing more than 60% of the market capitalization.

The tax treatment of capital gains depends on the tax rules applicable in the residence state of the investors. In Luxembourg, speculative capital gains realized by individuals within a six-month period following the acquisition of the crypto assets are taxable, whereas capital gains realized after six months are not taxable.