Legal The European Union has passed no specific legislation relative to the status of the bitcoin as a currency, but has stated that VAT/GST is not applicable to the conversion between traditional (fiat) currency and bitcoin.VAT/GST and other taxes (such as income tax) still apply to transactions made using bitcoins for goods and services.[1]:European Union In October 2015, the Court of Justice of the European Union ruled that "The exchange of traditional currencies for units of the ‘bitcoin’ virtual currency is exempt from VAT" and that "Member States must exempt, inter alia, transactions relating to ‘currency, bank notes and coins used as legal tender’", making bitcoin a currency as opposed to being a commodity.[2][3]According to judges, the tax shouldn’t be charged because bitcoins should be treated as a means of payment.[4]According to the European Central Bank, traditional financial sector regulation is not applicable to bitcoin because it does not involve traditional financial actors.[5]:5

Others in the EU have stated, however, that existing rules can be extended to include bitcoin and bitcoin companies.[6]The European Central Bank classifies bitcoin as a convertible decentralized virtual currency.[5]:6In July 2014 the European Banking Authority advised European banks not to deal in virtual currencies such as bitcoin until a regulatory regime was in place.[7]In 2016 the European Parliament's proposal to set up a taskforce to monitor virtual currencies to combat money laundering and terrorism, passed by 542 votes to 51, with 11 abstentions, has been sent to the European Commission for consideration.[8]The European Commission also notably presented a "parallel" proposal aimed at preventing tax evasion techniques as revealed in the Panama Papers.[9]In 2017 it was revealed that the proposal will require cryptocurrency exchanges and wallets to identify suspicious activity.[10]NEW ZEALAND-BASED BITCOIN TRADING PLATFORM, BITPRIME, OFFICIALLY LAUNCHESNew Zealand – BitPrime, a brand-new, full-service Bitcoin trading platform designed to provide a reliable and secure site for the buying and selling of Bitcoin, a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, this week officially announced their Bitcoin platform is open for business.Borne from a passion for taking the complexity and danger out of trading Bitcoins, which can come to represent a significant investment, BitPrime is a centralized, consolidated platform in New Zealand that uses a safe, third-party escrow service for all client’s peace of mind.“We are a cryptocurrency trading platform, committed to buying Bitcoin and selling Bitcoin at the most competitive rates available today,” said Geoffrey Palmer, Founder and Owner of BitPrime.

“The ultimate goal of our new site is to make the entire transaction safer and faster for everyone involved”.“Bitcoin is a fairly new concept for most people, so we want to make it an accessible form of investment for everyday New Zealanders”.bitcoin besser als gold“With interest rates being so low investors are looking for better returns in different asset classes, and this is precisely what Bitcoin offers”.For those interested in buying Bitcoin from the platform, they will be able to acquire the digital currency in just minutes.ethereum portOnce the client initiates a transaction, BitPrime’s third-party escrow partner, Local Bitcoins, will hold the bitcoin in trust until the payment has been made.buy litecoin bank transfer

BitPrime can accept both bank transfers and cash deposits, as well as in-person transactions for customers based in Christchurch.Investors are also able to sell their bitcoin on BitPrime.convertisseur bitcoin chf“We will always pay a competitive price for a client’s Bitcoins and act with discretion at all times,” said Geoffrey Palmer.ethereum chrome plugin“Bitcoin is a formidable up-and-coming digital currency that is revolutionizing business and monetary transactions as we know it throughout the world”.bitcoin number of script verification threadsBitPrime is a Kiwi-owned and operated business.asic bitcoin miner sale

They are committed to building long-term relationships with Bitcoin investors looking to take profits and Bitcoin miners.The BitPrime platform owns and updates an informational blog for all visitors interested in learning more about selling and buying Bitcoins.litecoin pool topIn last month’s column I covered the launch of the Law Foundation’s exciting new Information Law and Policy Project (ILAPP), which provides an independent $2 million fund to develop law and policy around IT, data, information and cyber-security.I’m now very pleased to say that we already have our first research project under ILAPP, and it deals with one of the most game-changing and challenging technology innovations in the world of business and finance.Like me, many of you will have heard of Bitcoin, the virtual or “crypto-currency” that can be used to pay directly for goods and services, bypassing banks and credit cards.ethereum bitcoin magazine

But you might not realise that Bitcoin is just one of hundreds of different digital currencies that use “blockchain” technology.University of Auckland Business School Associate Professor Alexandra Sims is lead researcher for the Foundation’s new project examining the regulation of digital currencies that use blockchain technology.She says digital currencies are poised to revolutionise the finance world and beyond, and pose challenges for lawmakers and regulators around the world.“The Reserve Bank is concerned about the potential ramifications for finance system soundness and efficiency,” she says.“The bank is not saying that these digital currencies are bad, indeed it is agnostic over what technology is used.The danger is that if you regulate too much, you won’t get the full benefits, but if you regulate too lightly, you could see problems such as money laundering.”A blockchain is a list or digital ledger that records transactions and stores them in secure “blocks.” Each block is then “chained” to the next block with a cryptographic signature.

The chains are replicated on each computer on the network.Because crypto-currency transactions bypass banks or other intermediaries, the transactions are almost costless, and the names of the parties involved are hidden.Blockchain technology and its uses are still evolving, and its progress has been speculative and volatile.Crypto-currency values have fluctuated wildly, creating big winners and losers – another reason for the Reserve Bank’s cautious approach.While traditional money rises and falls in value, it is generally much more stable than crypto-currencies.Although there have been examples of Bitcoin misuse since its introduction in 2008, Professor Sims says that crypto-currencies can be more traceable than cash.“It’s wrong to say that because a technology can be used for bad things, we shouldn’t use it,” she says.“On that rationale, we wouldn’t use fire.These are powerful technologies, but they carry risks.”Banks are keenly interested in blockchain technology, because it can reduce costs and improve the security and speed of transactions.

Hackers appear to be routinely stealing millions of dollars from banks, but, as Professor Sims explains, theft of crypto-currency would involve hacking into thousands of computers at the same time.But if digital currencies become widespread, transactions using blockchain-based crypto-currencies will slash banks’ profits.As Professor Sims explains, “with crypto-currencies people and businesses can pay anyone in the world directly, with no need to go through any third parties.”“Banks are trying to use it between themselves, because the benefits are massive, but they are going to try and limit how others use it,” she says.Like all Law Foundation-backed projects, the blockchain technology research is independent.Professor Sims points out that the Reserve Bank is very interested in research that is not backed by any vested industry interest.Another strength is that the team is interdisciplinary, combining expertise in law, banking, finance and economics.Indeed, it is a requirement that all the Foundation’s ILAPP projects are interdisciplinary.Professor Sims says that both New Zealand and Australia are taking a “wait and see” approach to regulating blockchain technology, though other countries have been more active.