Tag: Bitcoin Business News

Finance, Software

Europe Closes In On Taking a Decision Regarding Bitcoin VAT

A recent legal referral in the EU may be inching the region a little closer to more unity on one small element of bitcoin taxation, but it won’t do much to help global confusion on the matter. Cryptocurrencies are so new that few member states have worked out how to interpret the VAT rules for them.

In June, Sweden asked Europe’s highest court, the European Court of Justice (ECJ), whether cryptocurrency exchanges are liable for value-added tax on the fees that they charge for their services. The result could have far-reaching implications for tax in the region.

In Europe, there is a directive on VAT that explains how it should be levied. EU directives are powerful documents, designed as high-level guides that member states can interpret when making their own laws. Belgium, Croatia, Cyprus, the Czech Republic, Greece, Hungary, Ireland and Italy haven’t decided whether to charge bitcoin exchanges VAT on the service that they provide. Latvia, Luxembourg, Malta, Portugal, Romania and Slovakia have no regulations on the matter either.

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Some states have firm rulings on the matter of VAT for Bitcoins. The UK was among the first, effectively making bitcoin trading exempt from VAT in a ruling published in March. While exchanges and miners are off the hook, though, the UK says that VAT should be charged when goods and services are sold for bitcoin. Denmark has also said that bitcoin trades will be free of VAT.

Several states have taken an opposing view. Estonia made its own decision about VAT on profits from bitcoin exchange services, levying a 20% tax on those trading bitcoins as a service. It is also charging a 10% tax on profits from selling bitcoins. Poland has imposed a 23% VAT on bitcoin mining profits, although its position on bitcoin exchanges isn’t clear.

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Richard Atkins
Finance, Software

PayPal Subsidiary Braintree On Verge of Accepting Bitcoin

Payments firm Braintree, a subsidiary of eBay and PayPal, is “in talks” with Coinbase and several other processing companies on the possibility of accepting bitcoin, according to a Wall Street Journal report. Braintree provides payments software for a number of popular mobile applications including Uber, Airbnb, and GitHub.

The company, which was acquired by PayPal for $800m in December last year, was processing up to $12bn in payments annually at the time – $4bn of that via mobile apps. No matter which bitcoin processor Braintree may choose, accepting digital currency would represent another significant step in bitcoin’s lifecycle.

“People familiar with the matter” stressed that any deal would not include either eBay or PayPal accepting bitcoin for now, though senior executives including eBay CEO John Donahoe have at times expressed an interest in ways to accept digital currencies, even describing it as “inevitable”.

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Anyone who doubted the seriousness of those comments in the media may be swayed if a partner business as close as Braintree began accepting bitcoin, demonstrating its utility on a slightly smaller scale than the two online giants. It could also represent a foot in the door for future acceptance

Both Uber and Airbnb have much in common with bitcoin. The startups have been lauded by supporters in the technology world for their disruption of the taxi and hotel industry, though they have also encountered stiff opposition from established participants in those segments. Thanks to its formal partnership with PayPal, also an eBay subsiduary, Braintree now serves 40 countries and 130 different currencies.

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Richard Atkins
Finance, Software

DISH Embraces Bitcoin Payment Programs

DISH customers can now use bitcoin to pay their monthly TV bills. The Colorado-based company went live with its bitcoin payments program today as part of its previously announced third-quarter rollout. The first customers to pay for DISH services using bitcoin are Austin and Beccy Craig. The American couple have famously chronicled their attempts to live using only digital currency on their Life on Bitcoin blog.

DISH head of corporate communications John Hall framed the news as part of the company’s overarching goal to embrace innovation: “DISH has always been about investing in better customer experience, whether that’s changing the way that we watch TV or the way that we bill.”

Hall said the company’s bitcoin payment option will now be visible to those using its online My DISH accounts and its Hopper HD DVR devices. “You can actually go into an app within the Hopper and pay your bill, and now if you choose bitcoin, it will come [up] with a QR code that you can pay right on your TV screen,” Hall added.

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DISH will accept payments through bitcoin merchant processor Coinbase. One of the first customers, Beccy Craig told CoinDesk that, while she was previously been a DISH customer, she’s looking forward to resuming the service now that she can make monthly payments in bitcoin. Austin Craig added: “We had a lot of time to read books and take hikes, but there were not very many luxuries like DISH.”

While TV may have been off limits at the time, the couple did have some success stretching the limits of what was available for purchase with bitcoin, even booking airline travel and hotel stays. The couple’s adventure is due to be chronicled as part of the as-yet unreleased ‘Life on Bitcoin’ documentary. As of June, the project was in the process of being submitted to at least one major film festival.

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Richard Atkins
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Bitcoin News: Bitcoin ATMs to span across Canadian Malls & Tourist Spots

CAVIRTEX has launched its first six bitcoin-branded ATMs in the greater Toronto area. The machines mark the first phase of the exchange’s larger plan to bring 10 bitcoin ATMs to Canada through a partnership with Gateway Newstands, a retail chain with 500 locations in North America.

Speaking to CoinDesk, CAVIRTEX’s marketing and business development director Kyle Kemper said the launch was a major milestone for the Calgary-based company and bitcoin itself. Although details about the ATMs were first revealed back in May, Kemper said that the company has taken time to execute its vision and maximise the impact of the launch.

Kemper said: “We were looking for really high-traffic locations, because we want to bring CAVIRTEX and bitcoin to the general Canadian public.” Pictures of the vibrant units first surfaced online earlier this month, with many Reddit users lauding the company’s novel design and expressing excitement for the formal launch. Notably, the bitcoin ATMs were provided to CAVIRTEX by BitAccess, the bitcoin ATM manufacturer that was recently accepted into Californian accelerator Y Combinator.

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Kemper indicated that its decision to partner with Gateway lead the company to secure a number of high-value locations. Perhaps the most notable new entry to CAVIRTEX’s network lies at the famed tourist destination Niagara Falls. Kemper indicated that CAVIRTEX has installed an bitcoin ATM at the Casino Niagara, the first casino built in Niagara in 1996. One of a number of regional attractions near the natural wonder, the destination features 10,000 square meters of gambling space, on-site dining and free live music.

Additional noteworthy locations for the ATMs include the Bayshore Mall in Ottawa, Scarborough Town Center in Toronto and the Yorkdale Shopping Centre in Toronto, among others.

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Richard Atkins
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Major Bitcoin Firm Payza Launches Bitcoin Buying Options in 190 Countries

Global online payment processor Payza has announced it is now offering customers in 190 countries the ability to buy bitcoin via bank transfer. Payza took to its official blog to reveal the news, though this formal announcement followed preliminary tweets from both Payza business development consultant Charlie Shrem and the London and Montreal-based company itself.

In its formal remarks, Payza hinted that the bitcoin buying option will allow it to pursue larger goals in the bitcoin and digital currency space, stating: “This is our first step into the exciting space of cryptocurrency, currency that exists solely in the digital world. At Payza, we’re very interested in bitcoin and cryptocurrency, and we have big plans to expand the way bitcoin can be used on our platform.”

Payza first detailed its plans in the digital currency space in a May blog post that discussed bitcoin’s potential as a payments tool. This interest was further made evident in July, when Payza confirmed rumors to the The Wall Street Journal that Shrem was serving the company in an advisory role.

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Shrem elaborated on Payza’s goals, suggesting that the company’s biggest opportunities may be in catering to bitcoin’s merchant space. He explained that, unlike popular alternatives such as BitPay and Coinbase, Payza could become a one-stop solution for new merchants that want to capitalize on bitcoin but offer multiple payment methods. “[Payza will] be the only company where if a merchant actually wants to accept both credit card and bitcoin, they only need to work with one company,” he said.

Shrem indicated that Payza does not charge users to deposit funds into their accounts, but that a 2% charge for users who buy bitcoin via the platform applies. Buyers lock in the price of bitcoin upon purchase, however, the withdrawal process can be expected to take up to three days. Given that users are not charged to send funds through Payza, Shrem also remarked that the offering could position the company to become a player in the remittance space, adding:

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Richard Atkins
Finance, Software

Dell Gets a Positive Bitcoin Response

Less than a month after it first began accepting bitcoin, Dell has received 85 BTC (over $50,000) for a PowerEdge server order. NewsBTC first reported the story after Dell CEO Michael Dell tweeted the following:”Recieved PowerEdge server order @ http://dell.com for more than 85 #bitcoin (~$50K USD) #Dellbitcoin”

It’s not known exactly who placed the order, but since Dell’s off-the-shelf Poweredge servers range from $299 into the thousands, someone likely now has a whole farm acquired with bitcoin. Dell became the largest public company to go private last year when original founder Michael Dell closed a $25bn deal to regain its leadership. According to the company’s last public filing, it earned $56.9bn in 2013, with the largest gain in revenue increase in its enterprise solutions and services business.

While Overstock’s bitcoin customers have bought mainly sheets, cell phone accessories and audio-visual equipment, the nature of Dell’s core business meant some serious hardware purchases were more likely.

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The Texas-based computer hardware giant also marked its digital currency debut with a 10% discount for anyone purchasing its gaming-oriented Alienware machines with bitcoin. The company accepts bitcoin payments for US customers on any item on its Dell.com store site.

Dell’s CIO Paul Walsh hinted last month that Dell may pursue more extensive involvement in the bitcoin space, adding that accepting bitcoin was part of the company’s overall plan to align itself with technological innovation. He continued that he expected many other merchants to join in soon, indicating a growing legitimacy for bitcoin among companies in the mainstream economy. For now, Walsh said the company’s main goal for its bitcoin program will be to remove friction during the customer purchasing process and make it easier for its existing customer base to transact with Dell.

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Richard Atkins