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On 10th January 2018 1Legal.Net held an event, dedicated on the legal and tax issues of crypto currencies.
Here is a brief summary of what has been discussed.
The analysis of the legal framework of bitcoin and altcoins, made by Evgeniya Gancheva, founder of 1Legal.Net, highlighted the different approaches to the virtual money in different countries. The exponential growth of ICO projects and unclear legal nature of the business model of crowdsales requires quick and adequate response of the legal systems.
The legal status of crypto currencies in Bulgaria was analyzed by Vassil Kostov, legal consultant in 1Legal.Net. It's been stressed that the legal framework is fragmented and there is enormous regulatory loophole regarding virtual money.
Monika Petrova, head of Tax and Insurance Practice at NRA, gave practical explanations on the statements of the Revenue Agency regarding the tax treatment of bitcoins in Bulgaria. Crypto currencies are considered as a financial asset by the NRA, subject to taxation, and transactions with their exchange with fiat money are exempt from VAT.
Tax experts of Deloit – Valentina Lukova and Yordan Genov discussed basic issues concerning the taxation of the income of physical persons in the mining and sale of crypto money and the tax treatment of the transactions with crypto currenices under the Corporate taxation act. An analysis of the EC VAT Committee Interpretation on the crypto currencies transactions has been made as well.
Martin Kuvandjiev, crypto enthusiast and creator of BitcoinGold, talked on the issues related to the functioning and application of block chain technology in all areas of the economy and life. An optimistic forecast has been expressed about the future of virtual money in the light of the benefits of smart contracts.
The presentation of Vladimir Tassev, blockchain developer and one of the creators of Open Source University project, focused on practical issues with the launch of ICO projects in Bulgaria and the legal issues that one need to know when starting ICO.

If you need legal advice and assistance on issues related to Cryptocurrencies and ICO projects, you can contact us via the contact form or by phone call.