Germany recognises Bitcoin as a taxable currency

Germany has become the first country to take an official stance on the use of online currency Bitcoin, recognising it as legitimate for legal and tax purposes.

Berlin acknowledged Bitcoin as a “currency unit” and “private money”, according to German newspaper Frankfurter Allgemeine Zeitung and the online edition of the "New Osnabrück newspaper", citing a response from the Finance Ministry to a request from Frank Schaeffler, a member of the Parliament's finance committee.

This means that some commercial profits on Bitcoin-related transactions will now be taxable, although personal use will be tax-free.

Last week, it emerged that Bloomberg was internally testing a ticker for Bitcoin. Today's news will come as further good news for enthusiasts who want to see it widely recognised as a legitimate currency.