Should Virtual Currency Be Subject to Income Tax?
18 Pages Posted: 19 May 2014
Date Written: April 24, 2014
This paper describes the main characteristics of the most famous digital currency scheme – Bitcoin. It examines the question whether Bitcoin should be regarded as money in the economic and legal sense, and whether income in the form of virtual currency should be subject to tax. The paper does not try to determine whether such income is actually taxable in particular countries, but whether it would be a right and good policy to tax it in general.
Keywords: virtual money, virtual currency, digital money, Bitcoin, taxation, concept of money
JEL Classification: K34
Suggested Citation: Suggested Citation