When Is a Bitcoin Not a Bitcoin? When It’s an Asset, Says G-20

Finance ministers seeking to crack down on tax evasion this week in Buenos Aires have cryptocurrencies like Bitcoin at the forefront of their minds.

The Group of 20 countries are moving to a consensus that cryptocurrencies aren’t money after all, but an asset. That means trades potentially could be subject to capital gains tax.

Cryptos “lack the traits of sovereign currencies,” according to a draft G-20 communique obtained by Bloomberg. The G-20 ministers are scheduled to discuss the issue in full Tuesday afternoon.

“Whether you call it crypto assets, crypto tokens — definitely not cryptocurrencies — let that be clear a message as far as I’m concerned,” said Klaas Knot, president of De Nederlandsche Bank NV, who also chairs the Financial Stability Board’s standard committee on the assessment of vulnerabilities. “I don’t think any of these cryptos satisfy the three roles money plays in an economy.” […]

Read Full: When Is a Bitcoin Not a Bitcoin? When It’s an Asset, Says G-20