Days after European Banking Authority (EBA) issued a warning against virtual currencies like Bitcoin, Norway has said that Bitcoin isn’t real money and they will treat savings in Bitcoins as assets, which will be subject to capital gains tax.
Just last week EBA reminded consumers of the risks involved with virtual currencies. The EBA asked users to ensure that they fully understand the characteristics of virtual currencies like Bitcoin and don’t use real money that they can’t afford to lose to invest / buy Bitcoin.
Hans Christian Holte, director general of taxation in Norway, while speaking to Bloomberg said that Bitcoin doesn’t “fall under the usual definition of money or currency” and will instead be treated as an asset which will be taxable as capital gains. Germany resorted to a similar stand earlier in August.
Korea has already denied a legal monetary status to Bitcoin while China’s Central Bank also said that it doesn’t recognize Bitcoin as a legal currency and reminded banks in the walled country about the risks involved.
Techienews is yet to publish an article with positive news rgd Bitcoin. At least you’re consistent 😉
Spot on. It is getting embarrassing, and even worse the
journalists , sat in their offices hitting up the news feeds are just repeating
each other’s baloney. It is sad but a lot of “journalism” today especially
the mainstream is either , at best repeated and lazy, cowardly in nature, or at
worse bought and paid for propaganda, and it seems with the mantra “keep
repeating it and it will be come true” I actually pulled a journo
up the other day that was blabbering about Bitcoin, but had no clue, and had
never read the white paper, or even had a basic grasp of the technology or the implications, or the context, or the players involved…. or anything really, it seems they just repeated the same tired cliche, its a tulip, its a pyramid, its for drugs, it is not safe,, if the cryptology is broken everyone will lose everything, the same old total rubbish, and this now this latest one… I have seen it over and over , since China “BANS BITCOIN – and “DECLARES IT NOT REAL MONEY” like it was a bad thing, and then the day after, when someone with a real brain actually translated the text, and it turns out the news is infact highly positive for Bitcoin in China, it was embarrassing (for them) It seems the amount of times the journalists are on the wrong side of a story these days is too much for it to be coincidence. Anyway, if you are looking to accumulate some more mBTC/BTC , I see some dips on the way, good buying opportunity while the weak hands are drawn out by FUD such as this piece of journalism. Only thing I take from it , the only positve is that , actually we do not need the fanfare, the network effect is in fully swing, people have lost faith in the media anyway, and pretty soon, within two years as the ecosystem and big money grows, we are going to hit that vertical stage of the S curve, and then all these cheapo journos will be making out like they knew it was going to happen all along- mark my words.
Couldn’t agree more.
The debate raging on in the governments around the world is should bitcoin be classified as currency or commodity? The fact that this is even taking place is huge milestone in itself. My take is that it will be difficult for it to become an established currency until its price stabilizes. Here’s where we currently stand:
Germany said earlier this year that it would not recognize Bitcoin as a foreign currency or digital money, but would legalize it as a sort of “private money” or “unit of account,” so it could start taxing it.
The European Banking Authority, the central bank of the EU, recently warned consumers about the financial risks of the virtual currency, and is still looking into whether or not to try and regulate it.
Switzerland is also in an exploratory phase, albeit with a skeptical
eye. The Swiss government is researching the potential effects of the digital coins on the country’s robust financial system, and plans to issue a report on Bitcoin’s risks in the coming months.
France’s central bank, warned about Bitcoin’s volatility early this
month, calling it a financial risk for the individuals and businesses
that hold the virtual coins.
China, restricted its banks from allowing Bitcoin transactions earlier this month, worried about its instability and potential use for money laundering. It said Bitcoin doesn’t have “real meaning” as a currency, yet China accounts for over 80% of money inflows.
Korea also rejected Bitcoin as a legitimate currency. Last week financial authorities there said it was too unstable to have “intrinsic value” as a form of money.
Thailand’s central bank refused to license Bitcoin this summer, leading to the Thai Bitcoin exchange being shut down and an all-out ban on buying and selling the coins.
The US has given Bitcoin perhaps its warmest welcome yet. During a senate hearing last month the Feds were optimistic about the potential benefits of virtual currencies and downplayed Bitcoin’s risks, arguing they could be mitigated by extending
current finance laws and regulations to the virtual realm.
What is with the sulky childish, simplistic and slanted journalism? I have held my tongue, and held my tongue… but this is too much…just one example- “Bitcoin not real Money” = NEGATIVE – it is an ASSET according to Norway- and it will be taxed= A NEGATIVE! So let’s just totally miss out the fact that just as in China , it has been classified as “something” in this case an ASSET, which is better than some baloney illegal bubble that does not exist in the real world. Also you fail to point out that, as it is not considered “money” there are a million and one hoops it does not have to jump through, and therefore it is free for now to grow, and the infrastructure around it with minimal regulations, which would apply to cash (which it does not need in anyway, as one of the whole points to this is eliminating trust and third parties) Frankly it is getting embarrassing, and you have lost credability for me now, I understood at first, but now this is just bad journalism.