Canada is the first country which has decided to levy tax on Bitcoins. The Canadian Revenue Agency said that the digital currency isn’t exempted from Tax. Bitcoins, fringe online currency launched in early 2009, became a sudden hit this year. It went on to become the fastest growing world currency, led by speculators the hype was cashed in by a lot of people creating huge swing in the price. The cash value of a BitCoin jumped from under US$50 to above $250 and back this month, internet flooded with its news, people trading Bitcoin either made or lost a lot of money. It came under the purview of the taxing agency in Canada.


The CRA (Canada Revenue Agency) told the CBC there are two separate tax rules that apply to the electronic currency, depending on whether they are used as money to buy things (Barter system) or if they were merely bought and sold for speculative purposes. The internet world was quick to respond to this development, some surprisingly commented in favour of it calling it the right measure to check money laundering and tax evasion, while others ridiculed it. One of the comments read “If they want to tax bitcoins then they must be willing to take bitcoins in payment.”

[Via – Cbc]