Another setback for Bitcoin after receiving similar setbacks from the governments of China, India, Finland, Singapore and Canada – now, the Swedish government says that Bitcoin is no currency but an art. In the latest development the largest Nordic economy is set to reject Bitcoin and its competitors as a currency. The government says that it is similar to antique products.
According to Olof Wallin, an official at the Swedish Tax Agency who’s drafting rules for Bitcoin and the programmers who generate it, currencies are traditionally tied to a central bank or a geographic area. However, Bitcoin does not have any such feature. He said that in such a case the Stockholm-based agency will probably view Bitcoins as another asset.
Earlier ForexMinute reported that China declared that Bitcoin is like any commodity. Singapore government too came up with a similar definition for Bitcoin some weeks ago and even envisaged a plan to tax it which is not yet out though. Now, the Swedish government treating Bitcoin like art or antiques is something which many Bitcoin supporters consider a blow.
Bitcoin which came to existence 2008 has been challenging the assumptions of what money is; however, the governments worldwide are not willing to mend their laws to accommodate it, clearly out of risk that may undermine their manipulative power that they have with their national currencies.
Bitcoin is Capturing Attention of Regulators
However, irrespective of discouraging development over the months, Bitcoin has captured the attention users who are using it to pay at various outlets from taxis to restaurants to domain name registrations to bars. These things have also caught the attention of regulators. Earlier last year, the U.S. met with Bitcoin stakeholders to try to understand the digital currency.
Now, Sweden which has declared that it will treat Bitcoin as an art craft than a currency will tax it accordingly. The country says that it will instead subject the digital currency to taxes and treat it like any other asset e.g. arts, stamps, jewelry and antiques. According to reports Sweden will implement a capital gains tax on any transaction using the cryptocurrency.
Additionally, the reports are ripe that tax authorities and the central bank of Sweden are looking how to treat those who mine Bitcoins. The Bitcoin miners who have not yet been taxed may be taxed in future as businesses.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org