Some bit of news coming from Japan, which may or may not come as a surprise. The Japanese government, according to multiple reports, has said that bitcoin is not a currency, but is looking for ways to tax it.
“Bitcoin are neither Japanese nor foreign currencies and its trading is different from deals stated by Japan’s bank act as well as financial instruments and exchange act,” a document release by the Prime Minister’s cabinet read.
The news comes just days following reports that indicated the country’s government is poised the regulate the digital currency. These rules would ensure that banks and other financial institutions don’t get involved with cryptocurrencies, and also lays out the rules when it comes to taxing trades/transactions.
“Any bitcoin transactions are taxable when they fulfill requisitions stated by laws on income tax, corporate tax and consumption tax,” the government said in a statement.
At this point, there’s still quite a big of haziness surrounding bitcoin and it’s use not only in Japan, but around the world. As the digital currency has gained traction over the last year, we’re now seeing governments scramble to issue proper guidance with regard to legality and taxation.