Bitcoin to Get the ‘Art’ Treatment in Sweden

 

While regulators around the globe are still scratching their heads over what to do about Bitcoin, count Sweden among those unlikely to recognise it as a true currency. Instead, the largest Nordic economy is expected to reject Bitcoin and other virtual currencies and instead give them the same tax treatment it would give a piece of art.

Olof Wallin, an official at the Swedish Tax Agency, said in an interview with Bloomberg that true currencies are traditionally tied to a central bank or geographic area. His agency, which is drafting rules for virtual currencies and the programmers who generate them, “view Bitcoins as what we call another asset—just like art or antiques,” he said.

Interpreting Bitcoin in this way would allow Sweden to charge capital gains taxes on any transactions. It would fall under the same asset class as art, antiques, jewellry and stamps.

Wallin added that Sweden is also considering taxing Bitcoin miners as businesses.

Other Nordic countries are also trying to determine how to regulate Bitcoin; Norway has labeled it a taxable asset, Finland plans to treat it as a commodity and Denmark is drafting a proposal that aims to protect consumers and businesses from losses.

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