Japanese Government to Avoid Bitcoin

The Japanese government officially said Friday that it doesn’t consider bitcoin to be a currency and has no plans at present to regulate it as a financial product.

As it tries to cope with the fallout from the bankruptcy of the Tokyo-based Mt. Gox exchange, the government said that the crypto-currency would be treated like other goods and services, with commercial sales of bitcoin itself and bitcoin-based transactions subject to sales tax. In addition, any gains on exchange rates will be taxed as well.

“Any bitcoin transactions are taxable when they fulfill requisitions stated by laws on income tax, corporate tax and consumption tax,” the government said in its statement, which came in response to questions over how bitcoins will be regulated.

WSJ

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