17 Pages Posted: 11 Jan 2017
Date Written: December 30, 2016
In connection with the growing popularity of the use of virtual currency and with risks associated with its use raises the need of the European Union regulation. The group of users of virtual currencies extends and thereby it grows a risk of abuse of virtual currency for committing crimes such as money laundering, tax evasions, terrorism financing and more. The European Union deals with the issue of regulation of virtual currency at the theoretical level since 2012. In 2016, in connection with, inter alia, the terrorist attacks in Paris in the autumn of 2015, the Commission presented a draft amendment to the latest Money Laundering Directive, which also contemplates the regulation of virtual currency. The main impact of this regulation is to reduce the anonymous nature of virtual currencies.
This paper aims to introduce virtual currency and its existing regulation in the European Union, than in the Czech Republic and shortly in Germany and China. The issue of taxation of virtual currency will be also demonstrated on the current case law of the Court of Justice of the European Union.
Keywords: Money Laundering, Virtual Currency, Bitcoin, European Union
Suggested Citation: Suggested Citation
Vondráčková, Aneta, Regulation of Virtual Currency in the European Union (December 30, 2016). Charles University in Prague Faculty of Law Research Paper No. 2016/III/3. Available at SSRN: https://ssrn.com/abstract=2896911