Bitcoin Forum

The Japanese government will set rules for trading bitcoin, including imposing taxes on transactions with the virtual currency, that will become the basis for guidelines applicable to similar currencies in future, the Nikkei reported.

Japan’s government is still trying to explain the collapse of Mt. Gox – once the world’s once largest bitcoin exchange – and figure out how the Tokyo-based company could lose nearly half-a-billion dollars in bitcoins, Finance Minister Taro Aso said on Tuesday.Mt. Gox filed for bankruptcy protection in Japan on Friday, saying it may have lost 850,000 bitcoins due to hacking into its faulty computer system.

The guidelines proposed by the Japanese cabinet will call for taxing bitcoin transactions, defining the virtual currency as a commodity rather than a currency, the Nikkei said.

Gains from trading bitcoins on online exchanges, purchases made with bitcoins, and companies earning revenue from bitcoin transactions will be subject to Japanese tax, the financial newspaper said.

Banks will be also be prohibited from handling bitcoins while securities firms will be barred from brokering bitcoin trades, the Nikkei reported.

Bitcoin is a digital currency that, unlike conventional money, is bought and sold on a peer-to-peer network independent of central control. Its value has soared in the past year, and the total worth of bitcoins minted is now about $7-billion.

The virtual currency has engendered a new wave of creative criminality from hacking online platforms to steal bitcoins to their potential for use in money laundering, bribery and purchases of illicit products.

Last week, U.S. Federal Reserve Chair Janet Yellen said the U.S. Congress should look into legal options for regulating virtual currencies such as bitcoin.

Shanghai-based BTC China, the world’s largest bitcoin exchange by volume, has imposed new regulations to curb bitcoin trade weeks after Beijing banned financial institutions from trading in bitcoin due to the risks involved....

Full story here: http://www.theglobeandmail.com/report-on-business/international-business/asian-pacific-business/japan-to-regulate-and-tax-bitcoin-trades/article17292737/

Bitcoin is taxable now, you say?

Tell me more about how you think it's not real money.

The suggested guideline in the Japanese government are these,

1. Bitcoin is considered as material, NOT as currency (so it is like precious metal like Gold, Platinum.,,.)
2. Banks are prohibited to exchange bitcoin and currency. Making dedicated account is also prohibited.
3. Security brokers are prohibited to deal with bitcoin transaction
4. Capital gain tax and cunsumer tax (VAT) are imposed
5. Consider additional regulation in derivative trades

So BTC and other "copied from BTC" cryptocurrencies are not considered as currency. Regarding tax, it is thought to be difficult to track by IRS thus virtually little impact on us. As nobody even tries to exchange BTC at banks or security brokers, no impact for us. Only the impact would be Japanese exchanges need to have dedicated bank account for cash transaction. They would have to use non-Japanese Banks not like MtGOX.

The problem with Bitcoin isn't the lack of regulation, it's the amounts of hoops you have to jump through to be able to implement it in your business. If people were allowed to create things without massive oversight from the government then we might actually get a decent trustworthy exchange instead of having to use services located in different countries.

Because people give a shit about what a wannabe-1st world government (soon to be china and korea's bitch if not already) does. Especially about crypto with the whole point being free from centralize control.

LOL