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Case studies and testimonials

Our lecture on securities and blockchain

The topic of securities and their taxation is increasingly complex in an increasingly diverse economic world. All the more, if we add to this the current regulatory and taxation challenges that arise with attempts to capture cryptos, tokens, ICOs and other platforms that are built on the so- blockchain technologies. Just a few days ago, Peter Varga, partner of CARPATHIAN Advisory Group, gave presentation on this topic to Umbrella Group’s partners.

Blockchain is a distributed decentralized database for peer – to – peer transactions using decentralized data storage for various transactions or events. Blockchain as a technological solution has been designed as a more credible alternative to current transaction processes, which promises an increase in efficiency through faster procedures, lower transaction costs, safer performance, unchangeability of records, or the benefit of not having a central failure point. From a legal point of view, blockchain-based transactions can generally be classified as assets, barter, currency or financial instrument.

Although the value of virtual currencies or tokens may increase over time, despite their unclear classification and usage, there is no conceptual answer nowadays to income tax or alleged quasi profits (for example token for token exchange or alleged token transfers abroad) resulting from ownership , possession or disposal of these different digital assets. And just the topic of taxation of securities should not be presented today without reference to projects based on blockchain technologies and their potential taxation. If we look beyond the Atlantic Ocean, we know that some of these platforms have the character of securities and therefore fall into this matter.