Last week The Court of Justice, the highest court in all matters of European Union law, equalised bitcoin with traditional currencies by ruling that it should be exempt from value-added tax (VAT).
“Transactions to exchange traditional currencies for units of the bitcoin virtual currency (and vice versa) constitute the supply of services since they consist of the exchange of different means of payment,” the judges said.
Considering the increasingly important role bitcoin plays in the money transfer and currency exchange business, this is what our CEO and founder Michael Kent had to say:
“The fact that the EU court is even ruling on whether Bitcoin should be VAT exempt or not is another big step forward in recognition for digital currencies. Doubts still remain around anonymity and security, which have so far prevented more widespread adoption, but following Bitcoins commoditisation in the US, I’m not surprised the EU Court’s move to rule. If the EU follows this decision up with plans to regulate Bitcoin that will be the real game-changer.
Otherwise while crypto currencies’ low costs and faster speeds of exchange have huge potential, it’s the backend blockchain technology that we’ll first see go mainstream speeding up the international delivery of funds in place of services like SWIFT for financial institutions and corporations alike.”