Page 7 - Aequitas Europa EU Law Project 2017/18 For educational purposes only

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bitcoin exchanges when the private defendant voluntarily that takes away their control over the financial channels
requested a preliminary decision from the Swedish and creates new ones that breaks mass dependency on
Revenue Law Commission to ascertain his tax liabilities in banks and gives the consumer true financial freedom
that regard. The SRLC granted the exemption but the from the whim of rogue bankers with disruptive power
Skatterveket appealed against the decision. The themselves.
European Court of Justice held that “those transactions It is painting old concerns on new tech that has exposed
are exempt from VAT under the provision concerning the inefficiencies of the current system and collided head
transactions relating to ‘currency’, bank notes and coins on with it. Regulation is certainly needed to ensure
used as legal tender”. The recognition of Bitcoin as a maximum compliance with EU standards on privacy but
‘financial service’ in accord to the EU VAT Directive should not pose limitations on people’s rights to lawfully
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2006/112/CE by the ECJ speaks volumes. The Swedish choose a new economy and a global currency to pay for
Tax Authority still maintained that such exemption should goods and services where the current currency system is
not be granted under Article 135 of the Council Directive increasingly unsuitable, unsustainable, risky and
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on the Common System of Value Added Tax . This is the irresponsible.
only Bitcoin case settled at ECJ level to date and shows
clear promise in reaching a fair regulatory standard on Student:
cryptocurrencies which may encourage more market
A.D.
acceptance in the EU remit.
13016747

Conclusion

The EU is investing in blockchain technology but stepping
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away from legitimizing cryptocurrencies due to their
seismic characteristics they pose to the monetary system
as addressed above. Signs of the fact are apparent where
the EU has initiated an in-depth research that is exploring
significantly blockchain tech that can improve several
industries. After months of research, the EU launched its
Blockchain and Observatory Forum, adequately funded
and aiming at implementing the technology in harmony
with EU law and with clear governance models. 22
Member States have signed a Declaration on the
Establishment of an European Blockchain Partnership to
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harness the benefits of this new network . We do not
know what the future holds for the Union in relation to
crypto-assets and their underlying tech, but this is surely
a step in the right direction.
Strides have been made in order to reach a common
ground where the EU may benefit from the disruptive
technology in harmony with its regulatory environment.
The recognition upon the cost reduction in transactions,
global outreach that can bank the unbanked throughout
the world by providing financial inclusion are broadly
acknowledged across Member States but with extreme
caution and in absolute fear of promoting
cryptocurrencies as a viable, better and innovative form
of money. The benefits far outweigh the negative and
power hoarders will always crackdown on new innovation

12 http://eur- 14 https://news.bitcoin.com/european-commission-loves-blockchains-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:347:0001:0118:en:PD transparency-except-doesnt/
F 15 https://ec.europa.eu/digital-single-market/en/news/european-countries-
13 http://eur-lex.europa.eu/legal- join-blockchain-partnership
content/EN/TXT/HTML/?uri=LEGISSUM:l31057&from=EN