Financial regulators in Japan proposed the recognition of cryptocurrencies like Bitcoin as legitimate methods of payment on par with fiat money .
On the 23rd of February the Financial Services Agency of Japan submitted legislative revisions that would see BitcoinCT r: 8 and other virtual currencies recognised as legitimate currencies.
This has come about as a result of realizing that virtual currencies essentially fulfil the nation’s definition of the functions of a currency. Exchanges will need to register
Currently, virtual currencies are recognised as ‘objects’, as such they do not have the same status and are not treated the same as fiat currencies. It also means that they are not subject to any regulation by the Japanese authorities or otherwise.
The submission date for these changes has been set as the current ordinary ‘Diet’ session. The hope is that these changes will be passed before the current term ends. However, the predicted result of the decision is mostly unknown.
If the new proposed definition passes, virtual currencies must serve as a medium of exchange, i.e. they can be used for the purchase of goods and services. Those who choose to do so must also be able to exchange the virtual currencies for legal tender through purchases or trades with an unspecified partner.
All institutions that deal in the business of virtual currencies, i.e. all exchanges and bitcoin businesses, would need to register with the Financial Services Agency to ensure tighter oversight from the agency over the virtual economy . Consumer Protection
Mostly this has come about as a result of the 2014 collapse of the world’s largest bitcoin exchange at the time, Mt.Gox , as it greatly exposed the lack of consumer protection in the industry and highlighted other issues consumers had been having with missing funds despite deposits.The hope is that these steps […]
