In the case of Skatteverket v. Hedqvist, the ECJ ruled that the exchange of traditional currency for bitcoin virtual currency and vice versa constitutes a VAT exempt supply of services under the VAT Directive. The ECJ ruled that these were not a supply of goods because bitcoin cannot be characterised as tangible property. Moreover it ruled that, whilst bitcoin is not legal tender, transactions involving such non-traditional currencies are financial transactions. It said the VAT Directive would be partially deprived of its effect if it were interpreted to only include traditional currencies. Consequently, it also applies to exempt exchanges of cryptocurrencies. (Source: Skatteverket v. Hedqvist [2015] EUECJ C-264/14)