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]QuickTake: Bitcoin and the Blockchain Bitcoin extended Friday’s tumble amid concern China will tighten rules on the digital currency to curb capital outflows.The cryptocurrency slid 1.4 percent to $888 at 5:43 p.m.

in Hong Kong, after falling as much as 10 percent on Friday. to conduct self-checks and rectify any problems. reported.Bitcoin rallied since early 2015 as Chinese buyers turned to alternative assets to hedge against the weakening yuan and take cash out of the nation.By buying bitcoin onshore and selling it offshore for another currency, investors can evade the tightening scrutiny on fund outflows.Other than a ban on financial institutions’ involvement, Chinese regulators had largely taken a hands-off approach on the cryptocurrency.azioni bitcoin“Bitcoin is one of the rocks they haven’t turned yet in terms of controlling the flows,” said Zennon Kapron, managing director of Shanghai-based consulting firm Kapronasia.sell litecoin with paypal“It’s inevitable that there’s going to be something but the question is what the regulations will be when it happens.”This is not the first time China’s government has sent bitcoin tumbling.bitcoin greek crisis

In 2013, it banned financial institutions from handling bitcoin transactions, sparking a slide in price.The PBOC reiterated that stance in Friday’s statement, saying that bitcoin is a virtual commodity without the legal status of a currency.It characterized recent bitcoin moves as “unusual.”Bitcoin has become increasingly volatile since rallying to a record-high $1,162 on Thursday, slumping 11 percent that day after the yuan jumped.In December it surged 28 percent.For a Gadfly Take on Bitcoin, Click HerePolicy makers are likely to require more reporting from bitcoin exchanges and incorporate their flows into the monitoring of the $50,000 quota Chinese citizens are given to convert yuan to foreign exchange -- though it will be more challenging to do so with the decentralized cryptocurrency, said Kapron.bitcoin exchange jamaica, one of the most active Chinese exchanges -- said in a statement on its website that it works closely with the PBOC to ensure that it’s operating in accordance with Chinese laws.bitcoin core keeps crashing

Huobi, another major Chinese platform, will also conduct strict self-checks as required by regulators and it plans to work with other bitcoin firms to establish industry standards, chief operating officer Zhu Jiawei said in a message.The industry can benefit from balanced, risk-based regulation, Star Xu, chief executive officer of OkCoin Co., said in an e-mail.The PBOC’s Beijing and Shanghai branches met with representatives of major bitcoin exchanges, including OkCoin, on Friday to discuss their operations, he said.“The policy risks of bitcoin trading in China are higher” because the nation has capital controls, said Dong Dengxin, director of Finance and Securities Research Institution at Wuhan University of Science and Technology.deposit bitcoin coinbase“If bitcoin trading disturbs China’s financial order, there’s a possibility it will be deemed illegal or banned.”Bitcoin surged 120 percent in 2016 as the yuan dropped the most since 1994 and Chinese bonds and equities declined, though its total value of around $15 billion still pales in comparison with most mainstream asset classes in the nation.The digital asset traded at 6,188 yuan ($892) on Chinese firm OKCoin Co.’s platform, around parity to the dollar price based on spot rates.bitcoin shop bezahlen