But it will not be all that simple, the government will regulate transactions.
In February, Bitcoin reported that the first Japanese bill dealing with digital coins, which recognizes Bitcoin aas a legal payment method, has been in operation since this month.
The bill recognizes Bitcoin as a method of payment, but the cryptocurrency is not going to be a legal tender. Bitcoin will be recognized as a “value as an asset” for use in exchanges. Bitcoins will be usable as payment to indefinite parties for the cost of purchasing or renting goods or receiving services and that can be transferred through electronic data processing systems. The law states that “the new law defines Bitcoin, and other virtual currencies as a method of payment, but not a legally recognized currency. Bitcoin will continue to be treated as an asset unless there are future revisions or directives to Japanese tax law. ”
Along with making Bitcoin an officially recognized payment method, the bill also imposes a number of requirements for exchanges. They will be required to register with the Prime Minister and meet a number of requirements.
For example, they must have a minimum capital of 10 million yen, as well as a sufficient IT system to prevent theft and loss. They must also establish various systems and processes, such as employee training, internal rules, governance and subcontracting guidance.
In addition, the Asian nation has focused on the laws of taxes to the cryptocurrency declaring recently that the digital currencies are exempt of taxes to the consumer.
The Japanese consumer tax (JCT) is a tariff applied to all services or goods, which would be equivalent to what is known as value added tax; a sales tax or a GST, that is, a tax on goods and services.
Bitcoin, and other criptomonedas, applied to this tax until Deloitte Japan applied a proposal of change of tax law last December of 2016, which was approved by the National Diet of Japan on March 27 and sent to the ordinary session of the legislature of Japan to be put into effect the next first of July of this year.
Deloitte Japan states in its proposal document that Bitcoin, and digital coins in general, have been recognized as a means of liquidation by Japanese law. Because of this, the company claims that they would be exempt from the JCT.