Finland: Bitcoin Is Not A Currency

Finland’s central bank has determined that Bitcoin is not a currency.

Defining it as a commodity instead, the Bank of Finland said users do not enjoy any consumer protections and are cautioned to use the popular virtual currency at their own risk.

“Considering the definition of an official currency as set out in law, it’s not that. It’s also not a payment instrument because the law stipulates that a payment instrument must have an issuer responsible for its operation,” Paeivi Heikkinen, the central bank’s head of oversight, told Bloomberg Businessweek in an interview. “At this stage, it’s more comparable to a commodity.”

The move echoes sentiments from other central banks around the globe. Overall, many financial authorities see cryptocurrency as a risky asset rather than a functioning payment system.

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To learn more about the Bank of Finland’s decision on Bitcoin’s legal status, click here.