Newsletter January 2024 | Can a family foundation invest in Bitcoin

Does such an interpretation nullify the chances of generating income from crypto investments?

In the opinion of the Director of National Tax Information, virtual currency is not a financial instrument, nor can it be regarded as a right similar in nature to securities and derivatives, as referred to in Article 5(1)(4) of the Family Foundation Act.

According to the authority, virtual currencies do not have the characteristics of the financial instruments mentioned explicitly in the provision, namely securities and derivatives. Virtual currencies, are digital signifiers of value, the trading of which is not subject to the highly formalised regime of trading in financial instruments, nor to the supervision of the relevant authorities.

However, the possible perpetuation of the above position by the tax authorities will not deprive the family foundation of the possibility of investing in cryptocurrencies with the right to preferential taxation. Indeed, the family foundation may indirectly invest in virtual currencies by using the option to purchase a derivative for which the virtual currency will be the underlying instrument.

Individual interpretation of 4 August 2023.

0114-KDIP2-1.4010.312.2023.1.KS

If you would like to learn more about the establishment and operation of family foundations, we encourage you to read the “Guide to family foundations” prepared by our Law Firm’s Partner – r. pr. Wojciech Bokina.

Author:
	advocate Katarzyna Gelo