Bitcoin exchange is now tax-fee following EU Court ruling

By Daniel Zo Bitcoin, Exchange, Tax

Following regulation issues throughout Europe, in regards to whether bitcoin transactions should include state-tax as well, the highest court in the European Union finally ruled that virtual currencies can now be exchanged tax free throughout the Union.

Based on this, both Bitcoin and alternative cryptocurrencies will be treated just like regular money, with no taxes added when exchanges take place, as both bank notes and coins can now be used as legal tender. This is a great step forward for the cryptocurrency market, as now those trading on it are more advantaged, when compared to those still using fiat, where some other regulations apply as well.

The ruling comes after a dispute was stated in a Swedish Court, when a Swedish national went ahead and applied for permission, which was needed so that he could begin operating his online bitcoin exchange. During the court process, he was told that bitcoin was exempt from value-added tax, yet the Swedish Tax Authority went ahead and appealed against the decision, thus starting the court ruling which ended up being a positive one for crypto-users from all around the European Union.

The ruling is now considered a shot in the arm, which is bound to bring both growth and consolidation to the bitcoin network, which has recently taken a couple of hits, as banks throughout the world decided to stop supporting it because of claims stating that bitcoin was used more for criminal activity, rather than for normal, and legal transactions. Now, the ruling will surely pave the way for cheaper transactions, which is great news for the industry which is still struggling to become mainstream.

The ruling has also reportedly made the price of Bitcoin rise by 3%, which represents an $8 increase in value. There are chances that the bitcoin value rise also has something to do with an announcement which stated that over 80% of bitcoin transactions are currently being carried out in China, but we’re not yet certain about this. However, bitcoin users from all around the world are excited to see an increase in the value of the cryptocurrency, and we’re also curious about whether the price will remain at this stage, and fluctuate towards a higher value in the near future.

When compared to the U.S., where Bitcoin has recently been ruled as a commodity by the U.S. Commodity Futures Trading Commission, the EU decision puts Bitcoin in a better light, as it’s now seen just like legal tender, yet it is tax-exempt, thus encouraging more people from all around the world to invest into the digital currency.

Based on everything that has been outlined so far, what do you personally think about the EU court ruling? Let us know your thoughts in the comment section below.