Japan will be in two months admitted bitcoin as legal means of payment

Japan will be in two months admitted bitcoin as legal means of payment


Japan will soon recognize bitcoin as a legitimate means of payment. Related programs on encryption currency has recently passed the public consultation stage, will be implemented in April.

Effect of Bitcoin.com on the bill and the deep significance of bitcoin an interview with Anderson gross. TOMOTSUNE (AndersonMori&Tomotsune) lawyer office of special adviser to KenKawai, he has been in Japan published relevant regulatory and legal problems of virtual currency speech.

Countdown: This is the long-awaited bill

Bitcoin since its birth, its legal status in Japan has been very clear. Last March, a virtual currency (including bitcoin) the bill had been submitted to Congress for the first time. The act to amend the existing law “and” payment service “anti crime income transfer law”.

“Revised” payment service law “established the basic framework of virtual currency regulation, and formally published in June last year.” Kawai said. The draft guidance and supervision with the guidelines published in December last year, and on the bill of public opinion is also at the end of January 27th this year. Kawai added: “the new regulations will come into force in April 2017.”

The new payment method instead of the new currency

The act of bitcoin and other virtual currencies made formal definition. In order to realize the anti money laundering and combating terrorist financing and to protect the user’s goal, the act of virtual currency exchange services to develop the relevant regulatory rules.

But the bill only virtual currency is defined as a new mode of payment in Japan, they themselves are not classified as “money”. Kawai expressed a positive:

“The regulations, there are obvious differences of virtual currency and currency.”

He said that although the bitcoin was not viewed as a currency, but the government admitted that its payment status “will also have a positive impact on people’s psychology, and promote the widespread use of virtual currency”.

Bitcoin is widely used in japan. Japan exchange Coincheck revealed that its user base increased from 14000 in April last year rose to 76400 in January this year. In addition, the exchange report also pointed out that the domestic quantity accepted bitcoin payment businesses are also on the rise. Japanese Internet giant GMO group has recently announced it will launch its own bitcoin exchanges and wallet service.

At the same time, according to Coinhills, Japan now bitcoin trading volume has been ranked second in the world.

Other laws of Japan bitcoin account

Kawai explained that although the bitcoin will not because of lack of money and affect its title, but from a legal point of view, whether bitcoin will eventually be able to harvest the “currency” definition there is a world of difference.

He explained: “for example, if the virtual currency is defined as’ money ‘, then the virtual currency lending activities need to comply with the Monetary Control Act” (“loan lenders need to be registered as a” lender “); in addition, the derivatives of virtual currency transactions must comply with the relevant provisions of the” law “of financial instruments.”

Recently, the United States and other countries for tax purposes will be defined as a kind of virtual currency assets or property. Recently, Israel released a draft, bitcoin is defined as assets, so the bitcoin transactions need to pay value-added tax and capital gains tax (VAT).

However, for Japan, the bill is not defined as “virtual currency assets”. On the contrary, according to Japan’s definition of virtual currency with proprietary value”. Kawai also added that “Tokyo district court denied bitcoin” property rights “”. In addition, he clarified: “Japanese civil law and not vague legal features proprietary value. I did not expect the government will take the initiative to bitcoin recognized as “property”.”

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