Bitcoin is not welcome in Japan

Monday 10 March 2014 07:55 CET | News

The Japanese government have officially stated that Bitcoin is not a currency and, therefore, it will not be regulated as one.

As it tries to cope with the fallout from the bankruptcy of the Japanese Mt. Gox exchange firm, the government have informed that the crypto-currency would be treated like other goods and services, with commercial sales of Bitcoin itself and Bitcoin-based transactions subject to sales tax. In addition, any gains on exchange rates will be taxed as well.

The Japanese government made it clear that Bitcoin transactions are subject to taxes when they comply with requisitions approved by laws on income tax, corporate tax and consumption tax. Additionally, the government deems Bitcoins as being neither Japanese nor foreign currencies and its trading should be treated differently from deals stated by Japan’s bank act as well as financial instruments and exchange act. Banks also won’t be allowed to offer Bitcoins to their customers.

In early March 2014, the Japanese government revealed plans to set rules for trading Bitcoin, including imposing taxes on transactions with the virtual currency, which would become the guideline applicable to similar currencies.

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Keywords: Japan, Bitcoin, digital currency, transaction, ban, regulations
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce