Crypto ETPs are treated as financial instruments for tax purposes. The applicable tax treatment depends on the investor’s country of tax residence and individual circumstances. Please consult with your local tax advisor to confirm reporting.
Taxation of Crypto ETP
For tax purposes, income from Crypto ETPs is generally classified as investment income or capital gains, rather than income from direct crypto asset transactions.
Depending on local tax regulations, taxation may apply in the following situations:
- when a Crypto ETP is sold or redeemed and a gain is realised; or
- when a Crypto ETP is held as part of taxable assets.
Crypto-specific tax rules that may apply to direct crypto holdings, such as holding-period exemptions, generally do not apply to Crypto ETPs.
In certain cases, additional reporting obligations may apply, for example, where Crypto ETP investments are considered foreign financial assets under local tax law.
Example
An investor purchases a Crypto ETP on Mintos for EUR 1,000 and later sells it for EUR 1,300. The EUR 300 gain may be subject to taxation in accordance with the tax rules applicable in the investor’s country of tax residence.
This example is provided for illustrative purposes only.
Mintos does not withhold taxes. Investors are responsible for declaring income from crypto ETP investments and paying any applicable taxes.
Mintos does not provide tax advice. For specifics on local tax regulations, we recommend you obtain advice from the Tax Authorities or independent advice from tax consultants.