Austria to Tax Crypto Like Stocks to 'Reduce Mistrust'

Austria's Finance Ministry plans to impose a 27.5% capital gains tax on cryptocurrencies like bitcoin (EXANTE: Bitcoin) and ether (ETH) to reduce mistrust, Bloomberg has learned. The tax burden will impact Austrians starting from March 2022 as part of a wide-ranging tax overhaul.

"We are taking a step in the direction of equal treatment, to reduce mistrust and prejudice toward new technologies," the Ministry said.

Those who purchased cryptocurrencies before the deadline will not be subject to the levy. The tax will only apply when tokens are sold. This February, the Austrian Financial Market Authority (FMA) said the cryptocurrency market is overwhelmed with scams as prices go higher. The watchdog's spokesman, Klaus Grubelnik, also calls for "stricter regulation" as fraudulent offerings are spreading around the market because of the hype.

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