Seva
04-04-2017, 12:23 PM
Bitcoin as a legitimate payment method
We will remind, the bill recognizes bitcoin as a payment method, but not currency. As explains the largest trading volume of the cryptocurrency exchange Bitflyer, a bitcoin is "the value of such assets." Assets can "be used by citizens to pay for the purchase, lease products or receiving services, and sent via electronic data processing systems".
"The new law defines bitcoin and other virtual currencies as forms of payment, but not legal currency. Bitcoin is considered an asset until, until you have taken further amendments and changes to the tax laws of Japan".
Requirements for exchanges
In addition to adopting Bitcoin as a legitimate payment method, the bill also imposes several new requirements on cryptocurrency exchanges. In particular, they need to be registered with the government of the country and to comply with certain requirements.
For example, the exchange must have minimum capital of 10 million Japanese yen, and also have a proper system of protection from theft and loss. You must also enter certain systems and processes, e.g. training of staff, internal regulations and management guidance for outsourcing.
Entering into force on 1 April, the act also amends the Act on prevention of transfers of funds from criminal activities (Act on Prevention of Transfer of Proceeds Crimina). Now, to comply with the law, cryptocurrency exchanges must comply with strict KYC rules.
We will remind, the bill recognizes bitcoin as a payment method, but not currency. As explains the largest trading volume of the cryptocurrency exchange Bitflyer, a bitcoin is "the value of such assets." Assets can "be used by citizens to pay for the purchase, lease products or receiving services, and sent via electronic data processing systems".
"The new law defines bitcoin and other virtual currencies as forms of payment, but not legal currency. Bitcoin is considered an asset until, until you have taken further amendments and changes to the tax laws of Japan".
Requirements for exchanges
In addition to adopting Bitcoin as a legitimate payment method, the bill also imposes several new requirements on cryptocurrency exchanges. In particular, they need to be registered with the government of the country and to comply with certain requirements.
For example, the exchange must have minimum capital of 10 million Japanese yen, and also have a proper system of protection from theft and loss. You must also enter certain systems and processes, e.g. training of staff, internal regulations and management guidance for outsourcing.
Entering into force on 1 April, the act also amends the Act on prevention of transfers of funds from criminal activities (Act on Prevention of Transfer of Proceeds Crimina). Now, to comply with the law, cryptocurrency exchanges must comply with strict KYC rules.