Cryptocurrency is no longer a technological curiosity. It has become an asset class that tax authorities treat with full seriousness—and full severity toward those who ignore the implications.
The difficulty is that the law has not kept pace with the technology, and its interpretation remains inconsistent. The tax treatment of the same transaction may differ depending on whether the question concerns personal income tax, VAT, or corporate tax. Does mining constitute a business activity? When does a tax obligation arise upon exchanging cryptocurrency? How should one document transactions conducted on foreign exchanges? For most of these questions, there is no single, obvious answer—only positions taken by tax authorities, individual rulings, and administrative court decisions that must be known and correctly applied.
Skarbiec Law Firm has provided legal and tax services to clients operating in the cryptocurrency market since bitcoin was still an exotic novelty. Over the years, we have handled scores of matters—from straightforward annual tax filings to complex international structures.
Scope of Services
Tax qualification of transactions — analysis of tax consequences in cryptocurrency trading: transactions between individuals, sales to consumers, business-to-business dealings. Determination of when tax obligations arise, the tax base, and applicable rates.
Tax planning — selection of structures and solutions that permit lawful reduction of tax burdens. This applies to individuals as well as entities engaged in mining, trading, brokerage, arbitrage, currency exchange operations, or running an exchange platform.
Ongoing compliance — preparation of tax returns, maintenance of transaction documentation, representation before tax authorities.
Banking services — assistance in opening and maintaining bank accounts for entities operating in the cryptocurrency market. This sounds trivial; in practice, it is often the most difficult task. Banks are reluctant to serve the industry, and account closures without warning are not uncommon.
Licensing and regulatory compliance — advisory services regarding regulatory requirements, including VASP registration, AML obligations, and preparation for MiCA requirements.
Cryptocurrency is an area where a tax error made today may surface five years hence—when tax authorities decide to audit and reconstruction of transaction history proves impossible. It is better to put one’s affairs in order in advance.
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