Norway making Bitcoin-based business effectively illegal


#1

Do you have the source of this information that is the Norway government and not its banks?

The best I could find is that Norway banks were effectively freezing accounts or denying businesses linked to crypt - https://www.cryptocoinsnews.com/norwegian-banks-say-bitcoin-businesses-justcoin-exchange-closes/
Also in the Bitcoin legality page it still shows green - http://en.wikipedia.org/wiki/Legality_of_Bitcoin_by_country

Norway: The Norwegian Tax Administration stated in December 2013 that they don’t define bitcoin as money but regard it as an asset. Profits are subjected to wealth tax. In business, use of bitcoin falls under the sales tax regulation


XPY - Paycoin Discussion - GAW DAYS
#2

This was the big change:

Link from Skatteetaten w/ Google Translate:
http://www.skatteetaten.no/no/Radgiver/Rettskilder/Uttalelser/Prinsipputtalelser/Bruk-av-bitcoins--skatte--og-avgiftsmessige-konsekvenser/

Bitcoins are assets which as a rule should be valued by the market value in Norwegian kroner at the end of the possessing the kind of values at year end.

VAT
Turnover of Bitcoin is ordinary taxable supplies of electronic services. Tax Directorate’s assessment is that Bitcoins can not be considered as “legal tender” (VAT Act § 3-6 d) and therefore not be considered a exempt “financial service”. Bitcoins are classified as “service” (§ 1-3, letter c), namely the “electronic service” (§ 1-3, letter j).

In plain English, the law was changed to put Bitcoin into a 25% VAT category, meaning every commercial transfer of Bitcoin in Norway has to be taxed. This made Bitcoin as a currency effectively illegal, as nobody is going to pay a 25% surcharge on transactions. That’s why Norwegian banks shut down business with Bitcoin exchanges.


#3

Okay, so Bitcoin is heavily taxed in Norway. But not illegal to use or to do business with.


#4

It’s no longer a legal currency, which is what it had been classed as. Not illegal to own, just illegal to use as currency, with a VAT penalty kicker.


#5

Got it. I thought as much.
Thank you very much for looking that up for me and others.
Myself and @P4ndoraBox7 are using Cloudminr.io based in Norway and we canaries need to know :wink:


#6

I put a half bitcoin there too. Looking good so far! :wink:


#7

Cloudminr does mention on their site that they were in the process of registering outside of Norway, due to the generally crypto-unfriendly environment. I hope they’ve been able to do so.


#8

Thank you very much everyone for that kind of information.

Since I have an average of 4 BTC invested as well as @Aethercollector got some too.

Still, I’m glad to know that it’s only when we are using our Bitcoins as a currency in Norway that’s illegal and not when we mine it.

As for Cloudminr future plans, it’s already mentionned in the ‘‘our mining farm’’ section of Cloudminr the following statement ;

OUR PLANS FOR THE FUTURE
We are in the process of re-locating one of our facilities for more efficiency as well as registering ourselves as a legal entity, though not in Norway due to conservative & unclear approach towards crypto-currencies.
We are also following the development of 16 nm process and will be one of the first to receive the 16nm node chips.

Have a nice Hashing time with Cloudminr until then :slight_smile: