Cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Uniswap (UNI), Ripple (XRP), Polkadots (DOT), as well as NFTs, i.e., non-fungible tokens, are enjoying immense popularity in society. Trading in them is increasingly common, even if their regime has profound instability. The actions of those trading or wishing to develop virtual currencies or NFTs need to be analyzed against the existing legislative framework, or sometimes the lack thereof, to identify any imminent risks and possible legal consequences.
Our team can advise you on:
Transactions with cryptocurrencies and NFTs.
Our experts provide legal advice on virtual currency transactions, such as cryptocurrencies and NFTs.
Trading in cryptocurrencies and NFTs (Non-Fungible Tokens) is an emerging area of the financial world that is constantly changing in terms of regulation. As such a volatile and rapidly evolving area of law, investors are subject to inherent risks that are difficult to avoid without an expert in the field to guide the legality of these purchases.
These digital assets built on blockchain technology have grown visibly in recent years, succeeding in de-centralizing power that has previously been in the hands of corporations, banks, and governments.
So if you are an investor in this area or would like to become one, a consultation with one of our lawyers who specialize in these types of transactions helps you go through the necessary steps to make a secure transaction.
Tax treatment of transactions.
Knowing the tax treatment of virtual currency transactions is an important issue that needs to be addressed thoroughly.
Income earned by individuals from the transfer of virtual currency is taxable income, and the provisions of Chap. X “Income from other sources” of Title IV – “Income tax” of the Tax Code.
The tax due on this income is calculated by the taxpayer by applying the rate of 10% to the gain realized, determined as the positive difference between the sale price and the purchase price, including direct transaction costs. Earnings below 200 lei/transaction level are not taxed, provided the total revenues in a tax year do not exceed 600 lei. The deadline for payment of income tax is the deadline for submission of the Single Return on income tax and social contributions due by individuals – Chapter I. Data on income earned.
If you have made profits from virtual transactions and would like more information on their tax treatment, you can call on the Blaj Law team for the best advice in the field.
Declaration of income from cryptocurrency or NFT transactions.
Income from transactions in cryptocurrencies or NFTs must be declared on time and is considered to be self-employment income.
Persons who earn income from the transfer of virtual currency are required to declare this income by completing and submitting the Single Declaration on income tax and social contributions due by individuals – Chapter I. Data on the income realized to the competent tax body, for each tax year, by 25 May, inclusive, of the year following the year in which the income was recognized.
At the same time, their trading leads to tax obligations of a declaratory nature, but also payment obligations, as the income acquired is taxable income. Taxable income includes both cash and in-kind income. Individuals are obliged to declare this income, regardless of whether earned in Romania or abroad, as well as an income obtained after the initial sale through repeated resales, in the single return on income tax and social contributions owed by individuals.
Our team of lawyers specializing in this field can assist you in completing the declaration and meeting the deadlines so that you can avoid any inconvenience caused by failure to pay your compulsory contributions on time.
Protection of sensitive data.
The Blaj Law team advises you on how to protect your sensitive data.
The reason more and more people are attracted to the latest technological innovations is anonymity. The basic concept of a blockchain network and why it was created is the protection of this personal data, which is not always provided in the usual procedures for completing online transactions.
However, if you frequently enter into legal transactions through technology, this environment presents other types of risks to the privacy of your personal data. Thus, to ensure your protection in the usual legal and technological space, our lawyers analyze the acts you conclude in the online area and can warn you about the risks associated with these transactions.
Drafting and implementing smart contracts.
Our lawyers can assist you in drafting and executing smart contracts. This type of contract is automated between the contract creator and the recipient.
With the rapid and constant evolution of technology and the changing way people interact, an area of law has inevitably evolved and emerged that covers the technological area, a field related to other established areas of law such as commercial law, intellectual property, or personal data protection. Technology law is an area that encompasses all the legal provisions, rules, and conduct that must be observed in the use of technology.
One of the innovations in this area is so-called “smart contracts”, a contract that is automatically executed, its terms being implemented based on lines of code and stored on a blockchain network.
If you wish to conclude such a contract, do not hesitate to contact one of our specialists to ensure that it is finished in a proper way and with minimum exposure to possible risks.