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Report: Pakistan Can Generate $90 Million Annually if It Introduces a 15% Tax on Crypto Transactions

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Pakistan can generate tax revenues of at least $90 million each year if authorities impose a 15% tax on cryptocurrency transactions, an executive with a cryptocurrency exchange has said.

15% Crypto Tax

An executive with a Pakistani cryptocurrency exchange has said Islamabad can generate at least $90 million in tax revenues if authorities decide to levy a 15% tax on cryptocurrency transactions. The executive, Zeeshan Ahmed, the country general manager at Rain Financial Inc, claimed this would be possible if Pakistan adopts what one report calls “hard and fast regulations.”

In comments published by The International News, Ahmed claimed that Pakistan’s neighbor India and the United States are already getting billions of dollars in tax revenues. He said:

The US and India are collecting billions of dollars through a 30 percent tax on the profit earned from crypto trading. We can start with a 15 percent tax.

Role of Crypto in Pakistan’s Economy

Ahmed’s sentiments were echoed by his fellow executive, Aatiqa Lateef, the crypto exchange’s director of public policy. Speaking at the same event where attendees discussed the role of crypto assets in an economy, Lateef suggested his company is playing its part in helping to change regulators’ perception of cryptocurrencies.

“We are in constant touch with all regulators including SBP, PTA, FBR and others and will be ready to assist them,” explained Lateef. The director added that the Pakistani government has since set up committees to discuss different regulation scenarios. The committees are also expected to recommend policy options available.

Lateef, in the meantime, concedes that it could take between 12 and 18 months before the Pakistan government makes its decision. One of the reasons for this could be regulators’ lack of capacity or inability to police the crypto industry. However, with the assistance of cryptocurrency firms like Rain, Pakistan may overcome the challenges, Lateef said.

What are your thoughts on this story? Tell us what you think in the comments section below.

Germany Declares Crypto Gains Tax-Free After 1 Year — Even if Used for Staking, Lending

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Germany Declares Crypto Gains Officially Tax-Free After Holding for 1 Year — Even if Used for Staking, Lending

The German Ministry of Finance has published a letter officially confirming that the sale of crypto assets is tax-free after one year even if the coins are used for staking and lending.

How Crypto Gains Are Taxed in Germany

The German Ministry of Finance announced Wednesday that it has published a letter on the income taxation of cryptocurrency, stating:

This is the first time that there is a nationwide uniform administrative instruction on the subject.

The finance ministry detailed that in a hearing that took place last year, one of the most intensely discussed questions was whether the tax-free holding period for crypto lending and staking should be a minimum of 10 years.

The ministry noted that in coordination with federated states:

The letter now states that the so-called 10-year period does not apply to virtual currencies.

In Germany, cryptocurrency is viewed as “a private asset,” which means “it attracts an individual income tax rather than a capital gains tax,” crypto tax firm Koinly explained, emphasizing that Germany “only taxes crypto if it’s sold within the same year it was bought.”

Koinly further detailed:

As a ‘private sale’ in Germany, crypto gains are completely tax-exempt after a holding period of one year.

“In addition, profits on crypto sales up to €600 per calendar year remain tax-free,” the firm added, noting that previously, “When it comes to cashing in on staked crypto, that tax-free holding period is a minimum of 10 years.”

Citing the letter published by the Ministry of Finance, crypto advisor Patrick Hansen explained on Twitter:

The sale of acquired crypto assets will remain tax-free after one year, even if used for staking/lending.

Parliamentary State Secretary Katja Hessel commented: “For individuals, the sale of acquired bitcoin and ether is tax-free after one year. The period is not extended to 10 years even if, for example, bitcoin was previously used for lending or the taxpayer provided ether as a stake for someone else.”

What do you think about this German tax law? Let us know in the comments section below.

Zimbabwe Signs Agreement Enabling Collection of Taxes From Crypto and E-Commerce Entities

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The Government of Zimbabwe has confirmed signing an agreement with Daedalus World Limited which enables the latter to collect taxes from crypto and other content providers.

Zimbabwe’s Stance on Crypto


The Zimbabwean government recently said it had entered into an agreement with the British Virgin Islands-based Daedalus World Limited wherein the latter is expected to collect taxes from companies that offer “betting, gaming and cryptocurrency services to persons and organisations within the territory of the Republic of Zimbabwe.”

According to a News24 report, the inclusion of crypto assets in the tax list is the latest signal from the Zimbabwean government suggesting the country is gradually changing its stance on cryptocurrencies. As reported by Bitcoin.com News, the country’s monetary authorities have previously said Zimbabwe is not planning to adopt cryptocurrencies.

Public-Private Partnership


Despite these past pronouncements by the central bank and others, a general notice published by the information technology minister Jenfan Muswere may suggest the government has had a change of heart. The November 19 general notice states:

“The Republic of Zimbabwe entered into a public-private partnership agreement with Daedalus World Limited of Tortola, British Virgin Islands, in terms of which Daedalus World Limited will assist the Republic of Zimbabwe by providing a revenue collection service through taxing qualifying companies that provide digital advertising, content, cloud computing, e-commerce [and] gambling.”

Meanwhile, a News24 report states that as part of Daedalus World Limited’s tax revenue collection agreement with the government, internet giants like Google, Youtube and Facebook will be targeted.

What are your thoughts on this story? Tell us what you think in the comments section below.

Finance Committee Approves Legislation Delaying Crypto Tax in South Korea

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Finance Committee Approves Legislation Delaying Crypto Tax in South Korea

Changes meant to postpone the introduction of a tax on virtual assets such as cryptocurrencies in South Korea have been approved by an important parliamentary committee. The draft legislation seeks to delay Seoul’s plan to impose a 20-percent levy on gains from crypto transactions.

Ahead of Election, Major Parties Support Tax Break for Crypto Investors in South Korea

South Korean parliament is taking steps to suspend a planned tax on profits from digital asset investments for another year. The move has been supported by the ruling Democratic Party, despite disagreements with the government itself, as well as the leading opposition People Power Party.

The amendments, which also envisage the increase of an exemption on capital gains tax for real estate sales amid rising property prices, are viewed by Korean politicians as a popular proposition ahead of the upcoming presidential election in March next year, the Korea Joongang Daily noted in a report.

The Strategy and Finance Committee at the National Assembly passed the changes to the respective provisions during a meeting on Tuesday. The voting followed the approval of the revisions by its subcommittee on taxation during a session on Monday.

Authorities Need More Time to Set Up Taxation System for Crypto Assets

The two Korean parties have agreed to postpone the adoption of a 20% tax on annual profits from virtual asset investments exceeding 2.5 million won ($2,102). The government planned to introduce the tax on Jan. 1, 2022, but the recent voting indicates the tax is likely to be suspended until 2023.

The Democratic Party has been pushing for the delay as investments in cryptocurrencies have become quite popular with young voters who also find it very hard to save enough money for a home amid skyrocketing property prices. The party also hopes that the raising of the capital gains tax exemption for single residence owners who sell from a price of 900 million to 1.2 billion won ($1 million), will help to increase the availability of homes on the market.

DP representatives have argued that Korean tax authorities need more time to establish a proper tax system for virtual asset investing. However, Finance Minister Hong Nam-ki opposed the delay, stating that “The government is ready to immediately tax virtual assets.” He nevertheless noted that the executive power will comply with any decision by the parliament, which is expected to vote on the amendments in early December.

Do you think South Korean lawmakers will support the proposed amendments concerning crypto taxation? Tell us in the comments section below.

South African University Professor Urges Country to ‘Finalize Cryptocurrency Policy’ — Warns Against Resisting Crypto

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A professor with the University of Johannesburg, Rabelani Dagada, has urged South Africa to finalize its cryptocurrency public policy if the country still wants to become a hub for digital currency innovation.

History Will Repeat Itself

In an opinion published by Itweb, Dagada warned South African authorities that the continued efforts to stifle cryptocurrencies will not achieve the intended objectives. He adds that regulators must learn from history that violently opposing an emerging innovation will not kill it. He explained:

Technology has prevailed against violent and regulatory opposition. During the era of the industrial revolution, some workers in Britain rioted against mechanised manufacturing firms. Blue-collar workers waged a war against technology. They physically destroyed production machinery, cotton and woollen mills.

Dagada also shared a recent example of how “some people in the UK and SA falsely accused 5G technologies of causing the COVID-19 pandemic, and destroyed some mobile networks’ base stations.”

Opposing Cryptocurrencies Is a Futile Exercise

While South African authorities have not violently opposed cryptocurrencies, they have however refused to allow them to go mainstream. To illustrate this point, Dagada cites the Johannesburg Stock Exchange (JSE)’s refusal to approve the application by Sygnia to list bitcoin exchange-traded funds (ETF).

Dagada insists however that if the JSE approved the application, South Africa “would possibly have become a hub of cryptocurrency innovation, especially if one considers the country has highly-sophisticated financial services among the developing economies.”

Nevertheless, Dagada points out in his opinion piece that new technologies always eventually prevail despite opposition. Similarly, just like earlier technologies, cryptocurrencies — which are a “product of money and technology”— will similarly prevail. Dagada also argued that in addition to being an exercise in futility, formalizing crypto-currencies works in favor of South Africa because such digital currencies “hold lots of taxable tax.”

Do you agree with the professor’s opinions? Tell us what you think in the comments section below.