Bitcoin is often frowned upon for its alleged lack of regulatory guidelines when it comes to using the digital currency as a method of payment. However, people tend to forget various countries around the world are treating Bitcoin as either an asset or currency and impose taxation upon usage of the digital currency. Japan could be the next country on that list as government officials are pondering over the question of whether or not taxing Bitcoin should be revised.
Also read: Ethereum Price Technical Analysis 03/02/2016 – Calling For Gains Taxing Bitcoin Is a Double-Edged Blade
There are a few different factors to take into consideration when it comes to taxing Bitcoin . On the one hand, a tax on digital currency would give more credibility and legitimacy to Bitcoin as a valid form of payment. But on the other hand, consumption tax could stifle growth for Japan in the digital currency space as it would create a less appealing ecosystem for entrepreneurs and startups.
Taxing Bitcoin is not as straightforward as many people would assume it to be. The European Union has declared digital currency entirely exempt from taxation, whereas Australia and several other countries impose a goods and services tax on Bitcoin. This creates an interesting scenario regarding competitiveness, which only makes the job of Japanese financial regulators that much harder.
But there is more to this situation than just that, as Japan is the only country in the so-called “ Group of Seven major industrialized countries ” to tax digital currency. Whether or not this is a good decision, is being argued by various individuals in Japan, as this ruling affects both businesses and consumers in a negative way.
On the consumer level, buying Bitcoin from an exchange is subject to 8% consumption tax, which is on […]
