The Japanese government issued an official document to cancel the Bitcoin consumption tax next year

Currently, in Japan, buying Bitcoin requires an 8% consumption tax. Yesterday, the tax reform outline jointly released by the Liberal Democratic Party and the Civic Party showed that Japan will abolish this 8% consumption tax in July next year.

The Ministry of Finance and the Financial Services Agency of Japan held a meeting in October and proposed to cancel the consumption tax on Bitcoin. The tax reform outline released by the ruling Liberal Democratic Party and the Civic Party yesterday further explained this proposal. However, the document still needs to be finally reviewed by senior government officials.

The consumption tax still exists. But as long as the cabinet approves the tax reform outline, Japan's cryptocurrency industry will develop rapidly next year. According to local media Nikkei, the document represents the final opinions of government stakeholders.

Japan’s bitcoin startups are optimistic about the policy.

Mike Kayamori, CEO of exchange service provider Quoine, said the government’s plan to remove the GST was expected and “bodes well for the cryptocurrency community.”

This policy reduces our burden. Customers no longer have to pay taxes on every transaction. I hope this policy can become an industry norm.

Japanese bitcoin exchanges have been busy this year as the government requires companies involved in buying and selling bitcoin in the country to register information.

Japanese authorities began regulating exchanges in late 2015, but discussions began long before the collapse of Mt Gox, a bitcoin exchange that collapsed in early 2014, costing customers millions of dollars.