Page 7 - Aequitas Europa

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

13016747
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.

Conclusion

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

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