Many nations have made news with how they are choosing to accept, or not accept, bitcoin into their national economies.Some have chosen to ban outright the currency while others see it as an opportunity for domestic economic growth & as a tax revenue stream for the nation-state.Sweden has recently instituted new regulations that at least show it is not going to be banned anytime soon.In the country of Sweden, how they tax your income can be done in three different ways, depending upon its category of origin.You can be taxed on income from the economic activity, or a hobby.Bitcoin, or any digital currency, mining operations do not fall under this income sector due to the relatively high cost of equipment and the low potential for potential for profit.If you become good at mining, it will fall under this income outline, as outlined by Sweden’s Tax Authority in this way: “…..carries out the mining in a professional and cost-efficient manner over a longer period with appropriate equipment,” or if “the activity is expected to create a surplus as measured over the full financial calculation period” and “the computing capacity can be expected to generate more than 25 bitcoins a year (or the equivalent value in form of transactional fees or other virtual currency)…..” Also read: Sweden and Norway to add Bitcoin VAT – Norway to implement Bitcoin tax Bitcoin does not seem to be deemed as “capital”, so bitcoin will not be taxed as income derived from capital.

It is rare that hobby activities generate a taxable income, and tax deductions are available up to five years in advance, so bitcoin mining in Sweden will commonly fall under the tax of income from employment.Employment is the default tax sector for anything that doesn’t easily fit into a tax of economic activity or tax on capital.So Sweden has set up some laws as a baseline, which is a start.A problem with bitcoin comes in the form of a new ban against using bitcoin to buy or sell scrap metal or “waste products”.The ban dovetails with the ban of using cash to buy or sell scrap metal and other industries that is becoming popular throughout European governments.Cash is not very traceable, and bitcoin is not considered traceable (the block chain ledger of bitcoin transactions notwithstanding), so it will also be banned in Sweden under certain situations.The bans on cash are questionable in effectiveness, at best, and only hurt the average consumer, or a small business, not a criminal.

These certainly help build a “Police State,” where every transaction must be “traceable” and monitored, presumably under the guise of “fighting terrorism”, not that Sweden is a hotbed of terrorist activity.Similar cash bans are being tested in the United States as well.If that is the end goal or result, this ban may be indicative of a bigger problem in Europe than a person buying scrap metal in bitcoin.What do you think of the Swedish tax code for miners and the new Bitcoin ban joining a new cash ban?Share above and comment below.Virtual currencies can be exchanged tax-free in the European Union, following a ruling from the highest court in Europe on Thursday.Bitcoin and its alternatives can now be treated in the same way as traditional money, according to the European Court of Justice.It said in a statement Thursday morning that bitcoin transactions "are exempt from VAT (value-added tax) under the provision concerning transactions relating to currency, bank notes and coins used as legal tender."

The ruling comes after a dispute in a Swedish court when David Hedqvist, a Swedish national, applied for permission to operate his online bitcoin exchange.The Swedish Revenue Law Commission initially told Hedqvist that bitcoin was exempt from VAT but the Swedish Tax Authority appealed against that decision.Bitcoin is a virtual currency that allows users to exchange online credits for goods and services.bitcoin sellers in hyderabadWhile there is no central bank that issues them, bitcoins can be created online by using a computer to complete difficult tasks, a process known as mining.bitcoin tor onionThe ruling paves the way for potentially cheaper transactions within the EU and therefore a boon for the nascent industry.bitcoin kaufen in berlin

Jonathan Rogers, partner in the financial services regulatory group at international law firm Taylor Wessing sees it as an opportunity for emerging forms of financial services."(The ruling is) a shot in the arm – bringing growth and consolidation.," he told CNBC via email."Greater clarity can now emerge in the debate about how to regulate virtual currencies, leading to increased credibility and consumer confidence; in turn, virtual currencies will have a much greater critical mass in the financial services system."bitcoin hashrate networkThe price of bitcoin saw a slight increase after the news, rising around 3 percent, close to $8, during Thursdays' session.bitcoin chart difficultyIn September, the U.S.bitcoin mit paysafeCommodity Futures Trading Commission (CFTC) said that bitcoin would be classed as a commodity in the country along with gold and oil.circle bitcoin american express

The announcement came as the regulator ordered bitcoin options trading platform Coinflip, and its CEO Francisco Riordan, to cease trading due to it not registering and complying with its regulations.It added that it had also filed, and simultaneously settled, charges against the San Francisco-based firm.—CNBC's Arjun Kharpal contributed to this article.bitcoin handy bezahlenLegal The European Union has passed no specific legislation relative to the status of the bitcoin as a currency, but has stated that VAT/GST is not applicable to the conversion between traditional (fiat) currency and bitcoin.bitcoin tax swedenVAT/GST and other taxes (such as income tax) still apply to transactions made using bitcoins for goods and services.[1]:European Union In October 2015, the Court of Justice of the European Union ruled that "The exchange of traditional currencies for units of the ‘bitcoin’ virtual currency is exempt from VAT" and that "Member States must exempt, inter alia, transactions relating to ‘currency, bank notes and coins used as legal tender’", making bitcoin a currency as opposed to being a commodity.[2][3]

According to judges, the tax shouldn’t be charged because bitcoins should be treated as a means of payment.[4]According to the European Central Bank, traditional financial sector regulation is not applicable to bitcoin because it does not involve traditional financial actors.[5]:5Others in the EU have stated, however, that existing rules can be extended to include bitcoin and bitcoin companies.[6]The European Central Bank classifies bitcoin as a convertible decentralized virtual currency.[5]:6In July 2014 the European Banking Authority advised European banks not to deal in virtual currencies such as bitcoin until a regulatory regime was in place.[7]In 2016 the European Parliament's proposal to set up a taskforce to monitor virtual currencies to combat money laundering and terrorism, passed by 542 votes to 51, with 11 abstentions, has been sent to the European Commission for consideration.[8]The European Commission also notably presented a "parallel" proposal aimed at preventing tax evasion techniques as revealed in the Panama Papers.[9]