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European Courts Give Bitcoins Currency Status and Make it VAT Exempt

On 22nd October, the EU court undertook the decision to classify cryptocurrencies, including bitcoins, as that of usual currencies and therefore VAT exempt. This court decision defacto equates cryptocurrencies to other standard currencies. The whole idea of the decision is to make transactions involving bitcoins the same as operations which involve existing standard currencies.

This decision came about thanks to Swede David Hedqvist, the owner of bitcoin.se, a cryptocurrency conversion site. The local judge to which David appealed to with the request, could not undertake the decision independently and thus passed the request higher up the legal chain. As a result, the Court of the European Union exempted cryptocurrency transactions from VAT, under the same provision as currency, bank notes and coins used as legal tender.

Earlier this year in September, the CFTC (the US Commodities Futures Trading Commission) official classified bitcoins as a commodity. As a result, the commission received the right to trade futures and options with bitcoin as a base asset.

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