KRYPTORECHT | Experten-Interview mit SBS LEGAL | André Schenk | Finn Niklas Nitz | Markus Miller

Summary

This video covers critical legal and tax insights for cryptocurrency investors and traders. Experts discuss the importance of staying within legal boundaries, with a focus on regulatory frameworks, reporting requirements (like AWV for international transactions over €50,000), and the risks of non-compliance. The speakers highlight the importance of proactive legal consultation to avoid tax issues or penalties, stressing the increasing detection risk due to international laws. They also delve into cases of blocked online accounts (e.g., PayPal, YouTube) and provide guidance on resolving these issues with legal assistance, urging viewers to take action before problems arise.

Takeaways

• 😀 Always operate within the legal framework to avoid serious financial and legal issues, especially in cryptocurrency investments.
• 😀 Tax non-compliance, particularly in the crypto space, can lead to severe penalties and legal consequences. Staying compliant is crucial.
• 😀 Proactive tax compliance, including self-disclosure for past errors, is recommended to avoid future complications with tax authorities.
• 😀 The risk of being caught for non-compliance is increasing due to enhanced reporting standards like DAC 8 and common reporting frameworks.
• 😀 Germany’s AWV reporting requirement has been raised to €50,000, now including cryptocurrency transfers. Always report cross-border transactions that exceed this amount.
• 😀 If in doubt about whether to report a transaction, it's safer to report it rather than risk hefty fines for non-compliance.
• 😀 Even if using fintech platforms like Weltsparen to invest abroad, reporting may still be necessary when transferring significant amounts, especially over €50,000.
• 😀 The statute of limitations for tax crimes in Germany is 10 years, making it essential to resolve any potential issues early.
• 😀 Legal assistance is vital if facing issues like account suspensions (e.g., PayPal, YouTube), as these can lead to significant financial losses without proper support.
• 😀 It is often easier and more cost-effective to address legal and tax issues proactively than to try to fix problems after they arise.
• 😀 Specialized legal professionals in tax, economic, and crypto law are best suited to help navigate the complexities of these regulations and prevent long-term issues.

Q & A

What is the significance of the AWV reporting requirement for international financial transactions?

The AWV (Foreign Trade Regulation) reporting requirement mandates that individuals and businesses report international financial transactions exceeding €50,000. This includes both fiat money and cryptocurrency transfers, ensuring compliance with the law and avoiding penalties.

What has changed about the AWV reporting threshold recently?

The AWV reporting threshold has been increased to €50,000 from a previous amount (e.g., €12,500). This change applies to both fiat and cryptocurrency transfers, and individuals must report any relevant transactions above this threshold to the Bundesbank.

How does the increase in the AWV threshold impact individuals using fintech platforms like Weltsparen?

The increase in the AWV threshold to €50,000 means that users of fintech platforms like Weltsparen, who invest in foreign banks or financial institutions, must report transactions that meet or exceed this amount. This applies to transfers of funds or investments in foreign accounts.

What happens if someone fails to comply with the AWV reporting requirement?

Failure to comply with the AWV reporting requirement can lead to legal consequences, including the initiation of administrative proceedings, hefty fines, and potential criminal charges for non-compliance.

What is the role of legal experts when dealing with regulatory issues related to cryptocurrency or financial transactions?

Legal experts, particularly those specializing in economic, tax, and cryptocurrency law, play a crucial role in advising individuals and businesses on how to stay compliant with regulations. They can help with proactive measures, such as submitting self-disclosure declarations, and can represent clients in disputes or legal proceedings.

Why is it better to report financial transactions to the Bundesbank even if unsure?

It is generally better to report financial transactions to the Bundesbank, even if you're unsure, rather than risk non-compliance. Reporting too much is safer than underreporting, as it reduces the likelihood of facing legal consequences in the future.

What should individuals do if they have unreported income or past financial mistakes?

If individuals have unreported income or past financial mistakes, they should consider taking corrective action through methods like retroactive reporting or filing a voluntary self-disclosure. This proactive approach helps to mitigate penalties, especially given the high discovery risk under international regulations like DAC 8.

What are the potential consequences of not addressing past financial violations or failing to file necessary reports?

Not addressing past financial violations or failing to file necessary reports can result in significant penalties, including heavy fines or even criminal charges. Additionally, with the risk of discovery increasing through international cooperation (e.g., DAC 8), the chances of facing legal action are high.

What should businesses or individuals do if their accounts are suspended or blocked by platforms like PayPal or YouTube?

If an account is suspended or blocked, it’s essential to seek legal assistance. Lawyers can help resolve issues with the platform’s compliance department, clarify misunderstandings, and potentially restore access. Legal support can be especially crucial for businesses reliant on platforms for their income.

How does the legal process help in resolving issues related to blocked accounts or frozen funds?

The legal process involves working with the platform’s legal or compliance departments, often escalating the issue to higher levels to resolve the matter. Lawyers can also intervene with documentation, contracts, and formal legal arguments to address any misunderstandings or wrongful actions leading to blocked accounts or frozen funds.