Bitcoin isn't real money says Norway's government

BitcoinAll around the world governments are trying to freeze their positions on Bitcoin.

Chinese regulators banned financial institutions from using Bitcoin earlier this month, whereas Thailand's government declared the virtual currency's use illegal due to a lack of applicable laws in July.

Bitcoin has taken another hit now to its legitimacy as Norway Scandinavia's richest nation has said that the currency doesn't qualify as real money.

Hans Christian Holte, Norway's director general of taxation, said the currency "doesn't fall under the usual definition of money." Instead the Norwegian government declared Bitcoin to be an asset upon which capital gains tax can be charged.

He also said there will be a 25 percent sales tax for businesses. For now the new rules will apply to Norwegian Kristoffer Koch, whose $27 investment in the fledgling currency was worth $886,000 in October, but his home country's decision may not be final.

Holte is reportedly planning to work with other nations to work out the legalities of the new currency. Bloomberg says profits from Bitcoin will fall under the wealth tax, and that losses can be deducted.