By: Amanda Castle, GOptions London UK
Finland officially declared Bitcoin no longer a currency. Bitcoin will be used and valued as a commodity. Offering the ability to purchase goods and services but any income generated via capital gains is taxed. Paeivi Heikkinen, head of oversight at the Bank of Finland, states that ”Since Bitcoin is not an official currency, and also not bearing an issuer responsible for its operation, it also could not be declared as a form of payment instrument.
At this stage it’s more comparable to a commodity with the guidelines on how to treat it financially.” Across the world different countries are deciding how to treat Bitcoin. Scandinavia and Norway have also declared it as a non-currency, China has banned the use of Bitcoin, and Germany proposed it as private money. For the USA, The Internal Revenue Service has still not given specific guidelines as to how to proceed federally with the ”currency”, and individual states are also meeting to discuss the handling of Bitcoin. The New York State Department of Financial Services is holding a hearing on virtual currencies at the end of January.