APR 20 DIGEST: SPAIN VAT EXEMPTS BITCOIN, UK BANKERS TO DISCUSS CRYPTO AT SWIFT EVENT

The world of cryptocurrency continues to evolve at a breakneck pace, demanding constant vigilance and adaptation. Therefore, the CJEU considered Bitcoin s only purpose was a means of payment and concluded that the currency exemption under Article 135(1)(e) of the VAT directive applied. This exemption applies to legal tender, although the CJEU considered the exemption to be wider than legal tender and related to currency as a whole.This April, several key developments have captured the attention of crypto enthusiasts, regulators, and financial institutions alike. Find latest news from every corner of the globe at Reuters.com, your online source for breaking international news coverage.From Spain's progressive stance on Bitcoin taxation to the UK's exploration of crypto regulation and the pivotal discussions happening at major financial events, the landscape is shifting. Britain will exempt overseas stablecoin issuers from complying with its new cryptocurrency rules, as ministers commit to closer co-operation with the US in regulating the emerging global marketLast week, the Spanish tax office confirmed that Bitcoin transactions will not carry a Value Added Tax (VAT) much like other goods bought and sold in the country.Meanwhile, across the channel, some of the UK's top banking figures are preparing to delve into the intricacies of Bitcoin and other digital assets at an upcoming SWIFT event. Bitcoin transactions are exempt from value-added-tax (VAT) in Spain, says Spanish tax lawyer Alejandro G mez, The General Directorate of Taxes, a subsidiary ofThis convergence of regulatory clarity and institutional interest highlights the growing acceptance and integration of cryptocurrencies into the global financial system.This digest aims to unpack these developments, providing you with a comprehensive overview of the key takeaways and their potential impact on the future of crypto.

Spain Joins Eurozone in Exempting Bitcoin from VAT

Spain has officially joined a growing list of Eurozone countries that are exempting Bitcoin purchases from Value Added Tax (VAT). In Skatteverket v David Hedqvist (Case C-264/14), the Court of Justice of the European Union ruled that a company purchasing units of bitcoin from third parties and reselling them on its online exchange platform performs exempt services.This decision, recently confirmed by the Spanish tax authorities, marks a significant step forward in the country's recognition of Bitcoin as a legitimate means of payment.The General Directorate of Taxes (DGT), a subsidiary of the Spanish tax office, published a statement classifying Bitcoin, and other virtual currencies, as a means of payment exempting it from VAT charges.

Rationale Behind the VAT Exemption

The primary rationale behind this VAT exemption is rooted in the understanding that consumers are essentially buying payment or financial instruments when they acquire Bitcoin.This perspective aligns with a broader European trend, as evidenced by the Court of Justice of the European Union's (CJEU) ruling in the Skatteverket v David Hedqvist case (Case C-264/14).This case established a precedent for treating Bitcoin transactions as exempt services.

In that case, the CJEU considered Bitcoin's only purpose was a means of payment and concluded that the currency exemption under Article 135(1)(e) of the VAT directive applied.This exemption applies to legal tender, although the CJEU considered the exemption to be wider than legal tender and related to currency as a whole.

Article 135(1)(e) of the VAT Directive exempts ""transactions, including negotiation, concerning currency, bank notes and coins used as legal tender."" This legal framework provides the foundation for Spain's decision, solidifying Bitcoin's status as a VAT-exempt asset.

Implications for Bitcoin Users in Spain

This VAT exemption offers several benefits for Bitcoin users in Spain:

• Reduced Costs: The most immediate benefit is the elimination of VAT on Bitcoin purchases, making it more affordable for individuals and businesses to acquire and use the cryptocurrency.
• Increased Adoption: By removing a financial barrier, the VAT exemption is likely to encourage wider adoption of Bitcoin as a means of payment and investment.
• Clarity and Certainty: The official classification of Bitcoin as a VAT-exempt means of payment provides clarity and legal certainty for businesses and individuals operating in the crypto space.

For example, a Spanish resident looking to purchase 1 Bitcoin will no longer be subjected to VAT on that purchase, making it more attractive compared to other investment options that might carry VAT.

Learning How to Buy Bitcoin in Spain

With this new clarity, learning how to buy Bitcoin in Spain is more important than ever.Here's a brief overview:

1. Choose a Cryptocurrency Exchange: Research and select a reputable cryptocurrency exchange that operates in Spain, such as Binance, Coinbase, or Kraken.Consider factors like fees, security, and available payment methods.
2. Create an Account: Sign up for an account on the chosen exchange, providing the necessary identification and verification documents.
3. Deposit Funds: Deposit funds into your exchange account using a supported payment method, such as bank transfer or credit card.
4. Buy Bitcoin: Once your account is funded, you can purchase Bitcoin through the exchange's trading platform.
5. Store Your Bitcoin: For added security, consider transferring your Bitcoin to a personal crypto wallet, such as Coinbase Wallet, which gives you complete control over your private keys.

UK Bankers to Discuss Crypto at SWIFT Event

While Spain is solidifying its position on Bitcoin taxation, the United Kingdom is actively exploring the broader implications of cryptocurrency regulation.A key development in this area is the participation of some of the UK's top bankers in a fintech discussion panel at an upcoming SWIFT event. The Castilian taxation regime accept published a disceptation classifying bitcoin; Some of the UK's superlative bankers are to hash out bitcoin amidst a fintech give-and-take panel as well as to a greater extent than wordThis event provides a significant platform for industry leaders to discuss the challenges and opportunities presented by cryptocurrencies, including Bitcoin.

Significance of the SWIFT Event

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a global messaging network used by financial institutions to securely transmit information and instructions. Therefore, where a person pays consideration for the acquisition of Bitcoin, there is a supply that is exempt from VAT under Article 135(1)(e) of the VAT Directive, which exempts transactions, including negotiation, concerning currency, bank notes and coins used as legal tender.The inclusion of a crypto discussion panel at a SWIFT event underscores the growing recognition of cryptocurrencies as a force that must be addressed within the traditional financial system.

This signifies that discussions around crypto are no longer confined to niche tech conferences or online forums.Instead, they are now being integrated into mainstream financial gatherings, highlighting the need for collaboration and dialogue between traditional finance and the digital asset space.

Topics Likely to be Discussed

The discussion among UK bankers at the SWIFT event is likely to cover a range of topics related to cryptocurrencies, including:

• Regulation: The UK government is currently developing a comprehensive regulatory framework for cryptocurrencies, and the discussion is expected to address the key challenges and considerations in shaping effective regulations.Britain will exempt overseas stablecoin issuers from complying with its new cryptocurrency rules, as ministers commit to closer co-operation with the US in regulating the emerging global market.
• Central Bank Digital Currencies (CBDCs): The potential for central banks to issue their own digital currencies is a major topic of interest, and the panelists are likely to discuss the implications of CBDCs for the existing financial system.
• Decentralized Finance (DeFi): DeFi protocols are challenging traditional financial services, and the discussion is expected to explore the risks and opportunities associated with this emerging sector.
• Institutional Adoption: Large institutional investors are increasingly entering the crypto market, and the panelists will likely discuss the factors driving this trend and its impact on market stability.

It is also expected that bankers will discuss how existing payment systems and networks, such as SWIFT, can potentially integrate or interact with cryptocurrency networks to facilitate cross-border payments and other financial transactions. The General Directorate of Taxes (DGT) has announced that virtual currencies such as bitcoin will be exempt from value-added tax (VAT) in Spain Europe s VAT Landscape Taking Shape as SpainThis integration is seen by some as a crucial step in mainstreaming crypto adoption.

Implications for the UK Crypto Market

The discussions at the SWIFT event could have significant implications for the UK crypto market:

• Regulatory Clarity: The input from banking leaders could influence the development of UK crypto regulations, providing greater clarity and certainty for businesses operating in the space.
• Innovation: By fostering dialogue between traditional finance and the crypto industry, the event could spur innovation and collaboration, leading to the development of new financial products and services.
• Investor Confidence: Increased institutional involvement in the crypto market could boost investor confidence, attracting more capital and driving further growth.

Other Key Crypto Events and Developments

Beyond the specific developments in Spain and the UK, several other events and trends are shaping the broader crypto landscape.

Bitcoin 2025 and Tokenize 2025 Las Vegas

Bitcoin 2025 is a major event for Bitcoin enthusiasts, offering three days of education, celebration, and networking. Do more with your crypto with Coinbase Wallet Store your crypto in your own personal crypto wallet and explore decentralized finance (DeFi), buy and sell NFTs, and more. Learn moreThe event features a large expo hall, on-site networking lounges, and various presentations.Immediately following Bitcoin 2025 is the Tokenize 2025 Las Vegas conference, which delves into broader topics related to blockchain and digital assets.

These events offer opportunities for individuals and businesses to learn about the latest trends and technologies in the crypto space, connect with industry leaders, and explore potential investment opportunities.

BTC Prague: A Leading Bitcoin Event in Europe

BTC Prague is another significant event, considered one of the most influential Bitcoin conferences in Europe. See full list on news.bloombergtax.comIt brings together industry leaders, developers, and community members for education, discussion, and networking. Spain has joined what may be a growing list of Eurozone countries exempting purchase of Bitcoin from Value Added Tax (VAT). The common rationale for the exemption is that consumers are buying payment or financial instruments.The conference features talented speakers and over 20 exhibitions showcasing the latest innovations in the Bitcoin ecosystem.

The Continued Growth of the Cryptocurrency Market

The cryptocurrency market continues to experience significant growth, with the total market capitalization reaching trillions of dollars. Last week, the Spanish tax office confirmed that bitcoin transactions will not carry a Value Added Tax (VAT) much like other goods bought and sold in the country.This growth is driven by factors such as increased institutional adoption, the development of new DeFi applications, and the emergence of Bitcoin ETFs.

Payment providers are also increasingly recognizing and settling transactions in crypto, further solidifying its role in the global financial system.The increased trading volume on DeFi platforms and the launch of Bitcoin ETFs in North America are also noteworthy indicators of the market's maturation.

Understanding VAT and Crypto Mining

A frequent question among newcomers is how VAT impacts crypto mining activities. The Spanish tax authorities have published a statement classifying bitcoin as a means of payment exempting it from VAT charges. Some of the UK's top bankers are to discuss bitcoinExchange tokens received by miners for their mining activities remain outside the scope of VAT, as mining does not constitute an economic activity for VAT purposes.

Is Crypto Mining an Economic Activity?

Generally speaking, VAT is applied to economic activities, or services that are conducted with the goal of generating a profit. About the Event: Join other bitcoin enthusiasts and enjoy three days of bitcoin education and celebration during the Bitcoin 2025 event. Access the world s largest bitcoin expo hall, on-site networking lounges, and other events. Note that the event offers three passes, with various perks.Some countries have considered crypto mining to not fit this description and thus, do not charge VAT on the practice.

Navigating the Evolving Crypto Landscape

The crypto landscape is constantly evolving, requiring individuals and businesses to stay informed and adapt to new developments. A crypto calendar is a tool that tracks important dates and events in the cryptocurrency and blockchain industry. This can include things like upcoming conferences, product launches, and regulatory updates.Here are some tips for navigating this dynamic environment:

• Stay Informed: Follow reputable news sources, industry publications, and regulatory updates to stay abreast of the latest trends and developments. Binance is the world's leading cryptocurrency exchange, catering to over 270 million registered users in over 180 countries. With low fees and over 400 cryptocurrencies to trade, Binance is the preferred exchange to trade Bitcoin, Altcoins, and other virtual assets.Regularly use a crypto calendar.
• Do Your Research: Before investing in any cryptocurrency or participating in any crypto-related activity, conduct thorough research to understand the risks and potential rewards.
• Seek Professional Advice: Consult with a qualified financial advisor or legal expert to get personalized guidance on navigating the complex regulatory and tax implications of cryptocurrencies.
• Use Secure Practices: Protect your crypto assets by using strong passwords, enabling two-factor authentication, and storing your private keys securely.

Conclusion: Key Takeaways and Future Outlook

This April's developments, including Spain's VAT exemption for Bitcoin and the UK bankers' discussion at the SWIFT event, highlight the growing mainstream acceptance of cryptocurrencies. The Tokenize 2025 Las Vegas conference (formerly CoinAgenda) takes place this week, immediately following Bitcoin 2025, We ve seen the cryptocurrency market hit $2.5 trillion, leading payment providers recognize and settle in crypto, large institutional investors launch services and increase their digital asset portfolios, the first Bitcoin ETFs in North America, DeFi increase trading volumeThe Spanish decision provides clarity and reduces costs for Bitcoin users, while the UK's engagement with crypto at a major financial event signals a commitment to developing a regulatory framework. BTC Prague is the ultimate and the most influential Bitcoin event in Europe. The event is organized to bring education, discussion, and a community of industry leaders and developers under one roof. The conference includes talented speakers and over 20 exhibitions demonstrating the latest and hottest topics around Bitcoin.Combined with the expansion of events like Bitcoin 2025, BTC Prague, and the continued growth of the overall cryptocurrency market, the industry is poised for further expansion. Learn how to buy, sell, and trade Bitcoin in Spain. Find and filter the 7 best cryptocurrency exchanges by payment method, fees, and security.As the crypto landscape continues to mature, staying informed, conducting thorough research, and seeking professional advice will be crucial for navigating the challenges and opportunities that lie ahead.The key is to embrace innovation responsibly and contribute to the development of a sustainable and inclusive crypto ecosystem. In 2025, HMRC decided that under Item 1, Group 5, Schedule 9 of the Value Added Tax Act 2025, the financial services supplied by bitcoin exchanges - exchanging bitcoin for legal tender and viceAs more countries provide clarity, and as institutional interest keeps growing, the future of crypto is bright.Are you ready to participate?