Digital Asset Trading & Staking Services: How to Avoid VAT and Regulatory Pitfalls?

Learn how to navigate the complex world of digital asset trading and staking services, avoiding VAT and regulatory pitfalls, with expert guidance on recent developments, risk management, and compliance.

Key takeaways

Digital asset trading and staking services require careful consideration of VAT and regulatory pitfalls.
Utility tokens are subject to VAT, while payment and asset tokens are not.
Staking services can be complex, with counterparty risks and settlement risks to consider.
FINMA’s guidance on staking is still evolving, and industry participants need to be aware of the latest developments.
Clear communication and transparency are essential for building trust with clients and avoiding regulatory issues.
Market abuse and insider trading are significant risks in the digital asset space.
Industry participants need to ensure compliance with safekeeping requirements and manage counterparty risks.
The Swiss VAT authority’s definition of a utility token is still unclear, and industry participants need to be aware of the potential implications.
The FINMA has set a first milestone for the MICA, which will likely set a precedent for the industry.
Industry participants need to be aware of the risks associated with staking services, including settlement risks and counterparty risks.
Clear guidelines and regulations are needed to ensure the safe and secure operation of staking services.
The industry needs to grow up and become more professional, with a focus on compliance and transparency.
The role of unregulated service providers is still unclear, and industry participants need to be aware of the potential risks.
The Swiss tax authority’s definition of a utility token is still unclear, and industry participants need to be aware of the potential implications.
The industry needs to push for clarity and guidance on VAT and regulatory issues.

Digital Asset Trading & Staking Services: How to Avoid VAT and Regulatory Pitfalls?

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