Bookmark EconoTimes
EconoTimes
Digital Currency
Tuesday, May 24, 2016 as of 12:21 AM UTC
EconoTimes

Digital Currency Revolution

FXTraBox

Digital Currency

Japan’s Cabinet Approves New Bitcoin Regulations
Monday, March 7, 2016 7:21 AM UTC

In a move to improve transparency and ensure consumer safety, Japan's cabinet has approved new regulations relating to cryptocurrencies such as bitcoin. The new regulations recognize bitcoin as a legal form of payment fulfilling the functions of currency.

Currently, Japan has no laws on virtual currencies and effectively treats them as “objects”, Nikkei reported. Although bank deposits are protected by the Deposit Insurance Act, the country has no rules that require exchanges to set aside funds in case of bankruptcy. A Financial Services Agency official further noted that not all exchanges conduct external audits or segregate their own assets from those of customers.

The Japanese government intends to bring cryptocurrency exchanges under Financial Services Agency (FSA) supervision, require auditing by certified public accountants and impose a minimum capital requirement of 10 million yen. In addition, it plans to make annual financial reports mandatory, causing exchanges with weak finances to be weeded out naturally as inadequacies surface. Segregation will also be required, and exchanges will be required to disclose information about fees and contracts to users.

The Cabinet has approved the bill on virtual currencies that treat them as “asset-like values that can be used in making payments and be transferred digitally”, Japan Times reported. By requiring registration of cryptocurrency exchanges and designating the FSA as their regulator, the government hopes to prevent money laundering and ensure protection of the cryptocurrency users.

It is important to mention in this context that bitcoin taxation has become a heated topic among Japanese lawmakers.

"Can't you consider not imposing consumption tax on bitcoins in line with the international trend?" Tsukasa Akimoto, a member of the ruling Liberal Democratic Party, asked Finance Minister Taro Aso at a lower house budget committee meeting last month. Aso, however, pointed out that Japan is not alone in taxing bitcoins, citing Australia and other countries that tax virtual currencies.

TO GET STORIES IN REAL-TIME, SUBSCRIBE OR SIGN IN
Subscribe Now
© EconoTimes 2015. All rights reserved. The EconoTimes content received through this service is the intellectual property of EconoTimes or its third party suppliers. Republication or redistribution of content provided by EconoTimes is expressly prohibited without the prior written consent of EconoTimes, except for personal and non-commercial use. Neither EconoTimes nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.

Upcoming Economic Calendar Tuesday, May 24

GMT
Time left
Event
Period
Actual
Forecast
Previous
19:00 Released AR Trade Balance* Apr 332 mln $ 445 mln $ -266 mln $
14:00 Released US Rich Fed Comp. Index* May -1 14
01:30 2016-05-25T01:30:00+00:00364m AU Construction Work Done* Q1 -1.5 % -3.6 %
06:00 2016-05-25T06:00:00+00:00634m DE GfK Consumer Sentiment Jun 9.7 9.7
08:00 2016-05-25T08:00:00+00:00754m IT Industrial Sales MM SA Mar 0.10 %
08:00 2016-05-25T08:00:00+00:00754m IT Industrial Sales YY NSA Mar -0.2 %
08:00 2016-05-25T08:00:00+00:00754m DE Ifo Current Conditions* May 113.2 113.2
08:00 2016-05-25T08:00:00+00:00754m DE Ifo Business Climate* May 106.8 106.6
08:00 2016-05-25T08:00:00+00:00754m IT Industrial Orders MM SA Mar 0.70 %
08:00 2016-05-25T08:00:00+00:00754m IT Industrial Orders YY NSA Mar 3.80 %
Contributors
FxTrabox
Top ▲
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.