An Official for the European Central Bank Wants Further Taxation on Bitcoin

A leader in the European Central Bank has decided to ring in the new year by calling for the levying of taxes on the cryptocurrency, Bitcoin. The leading official in European Central Bank, stated on Wednesday, calling on different governments to act on implementing new legislations in regards to controlling and taxing Bitcoin.

The official continued his remarks by stating a similar party line adopted by many officials across nations and banks, calling the leading digital asset an item that sparks speculation and is utilized by criminals to engage in illicit activities.

It seems like the official is still stuck in 2017 as many governments and leaders who did cast aspersions on the leading digital asset has done a 360° and has embraced the currency.

The Banker stated,

“One ought to apply what the basic rule is in any other financial transaction: everyone involved should reveal their identity,” ECB governing council member Ewald Nowotny.”

Pushing for Transparency

Apparently, it seems that the official wants to push for full transparency across the board, making sure that all individuals who participate in the world of cryptocurrencies will be identified and accounted for.

A matter that may be a topic of contention for many due to anonymity being a key feature of various leading cryptocurrencies.

Nowotny, the ECB official, pushed for a further form of taxation and to treat it like it’s not a currency but something else.

“We need a value-added tax on bitcoin, since it’s not a currency.”

Representatives from the EU have already discussed taxation and are reforming some of their policies to account for the advent of cryptocurrencies. Nevertheless, it seems that some officials are pushing for further forms of tax, questioning the very definition of Bitcoin, and how it should be treated.

It appears that these sentiments might be shared by other members of the ECB who look at the volatile Bitcoin, as nothing more than a bubble, instead of a legitimate rising digital asset that can compete against the Euro and other traditional fiat currencies.

Bitcoin is a concern for those who regulate and control fiat currencies because it can fall slightly out of their jurisdiction.

Nowotny continued to echo concerns by stating:

“It can’t be allowed that we’ve just decided to stop printing 500-euro notes to fight money laundering, that we’ve slapped strict rules on every tiny savings club, and then have to watch people blithely laundering money around the globe with bitcoin.”

The matter of Bitcoin and cryptocurrencies is even affecting, to a certain, relationships between nations, as Russia is looking at the cryptoruble to circumvent actions taken by the global community to place sanctions on it.

Governments and Stances

Governments are taking several stances with cryptocurrencies, they are either banning the entire system outright, regulating it in a certain manner to control growth or minimize bad actors and consequences that might arise from their actions, or staying neutral.

Bitcoin Value Fluctuation

Meanwhile, Bitcoin looks to be fluctuating from fourteen thousand to fifteen thousand dollars over the past few weeks, different news on regulations or lack of is certain to have an impact on the growth of the digital asset.

By | 2018-01-05T04:23:36+00:00 January 5th, 2018|Cryptocurrency News|0 Comments

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