Finland Says Bitcoin is Not a Currency but Commodity

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Finland Says Bitcoin is Not a Currency but Commodity
Finland Says Bitcoin is Not a Currency but Commodity

Finland Says Bitcoin is Not a Currency but Commodity

A major setback has come for Bitcoin in Finland which has claimed that it is a commodity and should be treated like this and it is not a currency. In his statement Paeivi Heikkinen, head of oversight at the Bank of Finland in Helsinki said that considering the definition of an official currency as set out in law, it’s not that.

He clarified that Bitcoin is also not a payment instrument, because the law stipulates that a payment instrument must have an issuer responsible for its operation. Therefore, according to Paeivi Heikkinen, at this stage it’s more comparable to a commodity. It is to be noted that earlier China also came up with a similar decision last year.

Bitcoin Does Not Meet the Definition of a Currency

Thus, when Bitcoin doesn’t meet the definition of a currency or even an electronic payment form in Finland, customers won’t be able to buy products or services in exchange of Bitcoin; however, they can still do commodity exchange. Customers would definitely have a problem doing commodity exchange setup; however, Bitcoin still not being illegal is good news.

Following the measures from India, China, and Canada, Finland is the latest country to try to come to grips with the advent of virtual currencies that aren’t controlled by any central bank or government. The latest development in the country will definitely discourage Bitcoin transactions which increased a great extent and helped it reach to the benchmark of $1200.

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Earlier, several regulators in Europe had warned of the risks associated with using Bitcoin and similar virtual currencies that they consider are software as a substitute for real money. Norway came up with its stand that Bitcoin are no legal currency and customers should be cautious of using it as an alternative to the fiat.

Finland Government’s Reaction is Similar to the One from the Chinese Government
Nevertheless, Bitcoin has had a mixed reception and so far only the U.S. seems to be on terms with it. On the other hand, governments of China and India declared that Bitcoin is risky and financial transactions done in it are riski. Now, Finland, an AAA-rated euro member, has come up with the unwelcoming decision for Bitcoin, is alarming.
Finland which got the first BTC ATM in Europe where customers could buy Bitcoin, now taking measures like this is a major concern.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com