The Swedish Tax Agency is reportedly set to reject bitcoin as a currency, treating it tax-wise as an asset, like a rare artwork, or other valuable like an antique.
“Currencies are traditionally tied to a central bank or a geographic area,” said Olof Wallin, an official at the country’s tax agency.
Such a classification would allow the Swedish tax man to charge capital gains taxes on transactions made using the digital currency, which could certainly come as not-so-good news to enthusiasts.
Tax authorities are also looking into how bitcoin miners will be classified. A possibility is that miners should be classified as businesses, with the flexibility to allow them to deduct hardware expenses.
The news comes just days following Finland’s rejection of bitcoin as a currency, in which it is instead being treated as a commodity.
Read the full report on Bloomberg News.