January 20, 2014 5:34 AM

Finland Decides To Treat Bitcoin As A Commodity

The Bank of Finland has decided that Bitcoin has failed the currency test.  “The Currency Test” as it is referred to by banks and governments around the world in regards to Bitcoin has differing meanings wherever it is cited.  Bitcoin’s rise to the top is tumultuous indeed.
In an interview with Bloomberg’s Kati Pohjanpalo, Paeivi Heikkinen, the head of oversight over at the Bank of Finland, stated:

“Considering the definition of an official currency as set out in law, it’s not that. It’s also not a payment instrument, because the law stipulates that a payment instrument must have an issuer responsible for its operation, at this stage it is more comparable to a commodity.”
“Finns can enter into agreements on which means of exchange they want to use,” Heikkinen said. “No one supervises or regulates it, no one guarantees it and its value has fluctuated hugely. It’s at your own risk.”

Readers might recall that Finland is not the first country to decide that Bitcoin is more of a commodity than a currency.  It definitely isn’t the first to warn individuals that “no one supervises or regulates it,” words that echo the People’s Bank of China’s resounding words in their first statement on Bitcoin on December 5th, 2013 that had resounding effects on the exchange rate at the time.
In contrast to Finland’s opinion on Bitcoin: the United States is still waiting on official tax guidance from the Internal Revenue Service.  Even Senator Carper is pressuring the IRS to make things clear on Bitcoin to the American people.
For a quick visual synopsis of which countries in the world have legal opinions, and more specifics as to what they are, on Bitcoin… Check out
Just wanted to give a little shout out to the site for making a myriad of relevant information a little easier on the eyes.

Caleb Chen @bitxbitxbitcoin

Caleb is a graduate of the University of Virginia where he studied Economics, East Asian Studies, and Mathematics. He is currently pursuing his MSc in Digital Currency at the University of Nicosia.