Another Country Adds to the Bitcoin Pain: You're Not Real Money!http://www.fool.com/investing/general/2013/12/18/another-country-adds-to-the-bitcoin-pain-youre-not.aspx Jessica Alling
December 18, 2013
The dictionary defines money as something that's generally accepted as a medium of exchange, a measure of value, or a method of payment.
For those who support the use of bitcoins as a legitimate form of money or currency, you may find you have new opponents: Thailand, China, and Norway. With various governments taking a firm stand on the bitcoin debate, is the crypto-currency on the chopping block?
And that's exactly what happened this morning, after it was announced that China's largest exchange, BTC China, will no longer take orders in Chinese currency after the government demanded that businesses stop accepting bitcoins as a form of payment. The virtual currency's value dropped by nearly half on the news.
More where that came from
Norway's director general of taxation, Hans Christian Holte, stated that bitcoins are not actually a currency but an asset. So the rise and fall of value would be treated as such, with gains being taxed like any normal capital gain. Businesses would also be taxed at a 25% sales tax. The statement follows closely after one released by the German government. The decision may not be final, as Holte works with other international regulators to further develop laws for the currency, but for now the tally for governments against bitcoins as a currency is growing.