Digital Currency in Broader Sense, Status, Regulation and Development Trends

Miroslav Štrkolec; Ladislav Hrabčák

Digital Currency in Broader Sense, Status, Regulation and Development Trends

Publication date: 31.03.2021

Financial Law Review, 2021, Issue 21 (1)/ 2021, pp. 62 - 79

https://doi.org/10.4467/22996834FLR.21.005.13288

Authors

Pobierz pełny tekst

PDF

Titles

Digital Currency in Broader Sense, Status, Regulation and Development Trends

Abstract

The present article deals with one of the phenomena of the Industrial (Digital) revolution 4.0, which is digital currency in broader sense, respectively virtual currencies, as some authors refer to them. Despite the fact that this phenomenon is not such a novelty in society, it has demanded the focus of legal science only in recent years and the discussion has not subsided, it can be stated that it is only in the beginning. Along with digital currency in broader sense, there are several issues, such as the correctness of their naming, their legal status and, as far as the area of tax law is concerned, these are also questions of the manner and possibilities of taxing transactions with them. Authors set as a goal of this article to verify the following hypotheses:

- the naming of digital currency in broader sense as a currency is incorrect given the existing knowledge of financial law science.

- the legal regulation of digital currency in broader sense in selected Member States of the European Union is not sufficient.

To verifying the above hypotheses, the authors used several methods of writing scientific works, but especially analysis, synthesis, the method of comparison and the historical method, which the authors used in combination with each other.

Keywords

digital revolution., tax, law, tax law, digital currency in broader sense, digital tax

References

Download references

Ainsworth, R. – Alwohaibi, M. – Cheetham, M. VATCoin: The GCC´s Cryptotaxcurrency, Boston: Boston University School of Law, 2017.

Babčák, V. Daňové právo na Slovensku [Tax Law in Slovakia], Bratislava: EPOS, 2015.

Babčák, V. Finančné právo na Slovensku [Financial Law in Slovakia], Bratislava: EPOS, 2017.

Bagiová, A. Kryptomeny v kontexte novely Zákona o dani z príjmov [Cryptocurrencies in the context of the amendment to the Income Tax Act] (in:) Lukáč, J. et. al. (eds.) Financie, účtovníctvo, dane 2018 a ich právne aspekty so zameraním na súčasné problémy [Finance, accounting, taxes 2018 and their legal aspects with a focus on current issues], Košice: Ekonomická univerzita v Bratislave, Podnikovohospodárska fakulta so sídlom v Košiciach [University of Economics in Bratislava, Faculty of Business Administration based in Košice], 2018.

Bonk, F. O zdaňovaní príjmov v kontextoch zdieľanej ekonomiky [On income taxation in the context of a shared economy], Justičná revue [Judicial review], nr 12 [70], 2018.

Engliš, K. Národní hospodářství [National economy], Praha: Nakladatelství Fr. Borový v Praze, 1928.

Mareš, M. Kryptoměny z účetního a daňového hlediska [Cryptocurrencies from an accounting and tax point of view] Available at: https://www.epravo.cz/top/clanky/kryptomeny-z-ucetniho-a-danoveho-hlediska-108117.html, accessed: 10th October 2020.

Nakamoto, S. Bitcoin: A peer-to-peer electronic cash system, Available at: https://git.dhimmel.com/bitcoin-whitepaper/, accessed: 10th October 2020.

Nádaský, A., Pénzeš, P. Niekoľko úvah k virtuálnej mene bitcoin [A few considerations on the virtual currency bitcoin], Biatec, nr 8 [20], 2013.

Hrabčák, L. „Virtuálna mena“ a právo ["Virtual currency" and law], (in:) Sangretová, M. (eds.): Vplyv moderných technológií na právo: recenzovaný zborník príspevkov z vedeckej konferencie [The influence of modern technologies on law: a peer-reviewed collection of papers from a scientific conference], Košice: Univerzita Pavla Jozefa Šafárika v Košiciach, 2019.

Hrabčák, L., Popovič, A. On certain issues of digital services taxes, Financial Law Review, nr 1 [17], 2020.

Papula, J. et. al. Manažérska ekonomika [Managerial Economy]. 1. vydanie. Bratislava: Wolters Kluwer, 2017.

Stroukal, D., Skalický, J. Bitcoin a jiné kryptopeníze budoucnosti [Bitcoin and other cryptocurrencies of the future], Praha: Grada, 2018.

Vlček, F. Základní otázky právní regulace kryptoměn [Basic issues of legal regulation of cryptocurrencies], (in:) Pazderková, S., Janovec, M.: COFOLA 2018. Část II. Peníze, měna a právo [COFOLA 2018. Part II. Money, currency and law]. Brno: Masarykova univerzita, 2018.

Council Directive 2006/112 /EC on the common system of value added tax.

Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the taking up, pursuit of and prudential supervision of the business of electronic money institutions, amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46 /EC.

Act No. 586/1992 Coll., on income taxes, as amended.

Act No. 556/2001 Coll., on securities and investment services, as amended.

Act No. 595/2003 Coll., on income tax, as amended.

Act No. 222/2004 Coll., on value added tax, as amended.

Act No. 235/2004 Coll., on value added tax, as amended.

Act No. 370/2017 Coll., on payment system, as amended.

Judgment of the Court of Justice of the EU in Case C-264/14 Hedqvist ECLI: EU: C: 2015: 718.

Česká národní banka. Kryptoměny? Nepomáhat a nechránit [Cryptocurrencies? Do not help and protect], Available at: https://www.cnb.cz/cs/verejnost/servis-pro-media/autorske-clanky-rozhovory-s-predstaviteli-cnb/Kryptomeny-Nepomahat-a-nechranit/#, accessed: 10th October 2020.

European Bank Authority. EBA Opinion on „virtual currencies“, Available at: https://eba.europa.eu/sites/default/documents/files/documents/10180/657547/81409b94-4222-45d7-ba3b-7deb5863ab57/EBA-Op-2014-08%20Opinion%20on%20Virtual%20Currencies.pdf?retry=1, accessed: 10th October 2020.

Európska centrálna banka. Virtual Currency Schemes, Available at: https://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdf, accessed: 10th October 2020.

Európsky parlament. Crypto-assets. Key developments, regulatory concerns and responses, Available at: https://www.europarl.europa.eu/RegData/etudes/STUD/2020/648779/IPOL_STU(2020)648779_EN.pdf, accessed: 10th October 2020.

Malta Financial Services Authority. MFSA Warning-Bitcoin Revolution, Available at: https://www.mfsa.mt/news-item/mfsa-warning-bitcoin-revolution-2/, accessed: 10th October 2020.

Ministerstvo financií Slovenskej republiky. Metodické usmernenie Ministerstva financií Slovenskej republiky č. MF/10386/2018-721 k postupu zdaňovania virtuálnych mien [Methodical guideline of the Ministry of Finance of the Slovak Republic no. MF / 10386 / 2018-721 on the procedure for taxing virtual currencies], Available at:

https://www.google.sk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=

2ahUKEwiz78jtj7nsAhUNGuwKHTDzCYYQFjAAegQIBRAC&url=

https%3A%2F%2Fwww.mfsr.sk%2Ffiles%2Farchiv%2Ffinancny-spravodajca%2F4577%2F2%2FUsmernenie-k-virtualnym-menam.pdf&usg=AOvVaw1JL8YeprV0KLnSCMY1PAGO, accessed: 10th October 2020.

Ministerstvo financií Českej republiky. Sdelení Ministerstva financí k účtovaní a vykazovaní digitálních měn [Communication from the Ministry of Finance on the accounting and reporting of digital currencies], Available at: https://www.mfcr.cz/cs/verejny-sektor/ucetnictvi-a-ucetnictvi-statu/ucetnictvi-podnikatelu-a-neziskoveho-sek/aktuality-a-metodicka-podpora/2018/sdeleni-ministerstva-financi-k-uctovani-31864, accessed: 10th October 2020.

Národná banka Slovenska. Upozornenie NBS-Bitcoin [NBS-Bitcoin warning], Available at: https://www.nbs.sk/sk/informacie-pre-media/tlacove-spravy/detail-spravy/_upozornenie-nbs-bitcoin, accessed: 10th October 2020.

Národná banka Slovenska. Upozornenie NBS na platformy Bitcoin Revolution, Bitcoin Evolution [NBS notification on Bitcoin Revolution, Bitcoin Evolution platforms], Available at: http://www.nbs.sk/sk/dohlad-nad-financnym-trhom-prakticke-informacie/upozornenia-a-oznamenia/upozornenia-na-nepovolenu-cinnost-subjektov /upozornenie-nbs-na-platformy-bitcoin-revolution-bitcoin-evolution, accessed: 10th October 2020

Altcoin Available at: https://en.bitcoin.it/wiki/Altcoin, accessed: 10th October 2020.

Nová legislatíva pre kryptomeny: Únia chce vlastnými pravidlami nastaviť celosvetové štandardy [New legislation for cryptocurrencies: The Union wants to set global standards with its own rules] Available at: https://euractiv.sk/section/digitalizacia/news/nova-legislativa-pre-kryptomeny-unia-chce-vlastnymi-pravidlami-nastavit-celosvetove-standardy/, accessed: 10th October 2020.

Today´s Cryptocurrency Prices by Market Cap Available at: https://coinmarketcap.com/, accessed: 10th October 2020.

Information

Information: Financial Law Review, 2021, Issue 21 (1)/ 2021, pp. 62 - 79

DOI: https://doi.org/10.4467/22996834FLR.21.005.13288

Article type: Original article

Authors

Miroslav Štrkolec

https://orcid.org/0000-0001-8712-1945

Department of Financial Law, Tax Law, and Economics Pavol Jozef Šafárik University in Košice, Faculty of Law.

Ladislav Hrabčák

https://orcid.org/0000-0002-4670-3399

Faculty of Law, Pavol Jozef Šafárik University in Košice in the Slovak Republic

Published at: 31.03.2021

Article status: Open

Licence: CC BY-NC-ND

Percentage share of authors:

Miroslav Štrkolec (Author) - 50%

Ladislav Hrabčák (Author) - 50%

Classification number:

JEL Classification System:

Tax Law (K34)

Article corrections:

Publication languages:

English

View count: 575

Number of downloads: 902

<p>Digital Currency in Broader Sense, Status, Regulation and Development Trends</p>

Download xml