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Bad news for Bitcoin

Bad news for Bitcoin

Bitcoin has just taken another hit. Norway’s director general of taxation, Hans Christian Holte, doesn’t consider Bitcoin real money. Instead, the Norwegian government will consider Bitcoin as an asset subject to capital gains tax. Furthermore, there will be a high 25% sales tax for businesses making transactions in Bitcoin.

According to Holte,

“[Bitcoin] doesn’t fall under the usual definition of money.”

Norway isn’t the first country to reject Bitcoin as a legitimate currency. A lot of Asian countries have had similar policies towards the cryptocurrency. Earlier this year in July, Thailand’s government ruled Bitcoin as illegal, recently China’s central bank said it doesn’t consider Bitcoin a legal currency, and Korea also recently rejected Bitcoin as a legitimate currency.

European countries have been more favourable towards Bitcoin (with the exception of Norway, of course). Germany classified Bitcoin as “Rechnungseinheiten,” or “units of account.” The French government even allowed a Bitcoin exchange to operate as a real bank.

Perhaps (hopefully) Norway will change its stance on Bitcoin. But until then, Bitcoin is essentially dead in this Scandinavian nation.

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Posted by Neil Sardesai

I enjoy keeping up with the latest stuff in science and technology and have been following Bitcoin for a few years now. I also occasionally post cool stuff on twitter.