Japanese lawmakers call for tax exemptions for Bitcoin transactions

Rage Comment : Japan has made it clear that it will impose taxes on Bitcoin transactions. Considering the collapse of the Mt.Gox Bitcoin exchange, Japan has always been very hesitant about Bitcoin. At the beginning of this year, news about Japan and Bitcoin or blockchain has gradually increased. A recent draft regulatory proposal from the Financial Services Agency of Japan pointed out that Japanese lawmakers are trying to strengthen the reporting requirements for Bitcoin transaction data. Japanese lawmakers have begun to explore the application of government-issued currency regulatory policies to digital currencies.

Translation: Annie Xu

A ruling party lawmaker in Japan has called for a reduction in the 8% consumption tax on Bitcoin, local news reports said.

The initiative was debated by lawmakers at a hearing of the Budget Committee of the House of Representatives of the Japanese Diet on February 5. According to the Nikkei report, Liberal Democratic Party lawmaker Tsukasa Akimoto submitted the issue of tax reduction for Bitcoin transactions to Finance Minister Taro Aso.

Tsukasa Akimoto asks:

“Can’t we follow international practice and consider reducing or exempting Bitcoin consumption tax?”

Taro Aso responded from the perspective of his country’s tax policy:

Japan isn’t the only country to impose a tax on Bitcoin transactions.

At the same time as the Bitcoin tax controversy, the Japanese government has formulated relevant digital currency regulatory policies and a number of emerging companies have grown around blockchain technology.

Japanese lawmakers are seeking to strengthen reporting requirements for bitcoin transaction data, according to a draft regulatory proposal from the Financial Services Agency (FSA) this year.

Japanese lawmakers have recently begun exploring the application of government-issued currency regulatory policies to digital currencies.

There are reports that the proposal will be submitted to the Diet for discussion within the year. However, the Financial Services Agency of Japan said that "we have not made any decision" on the specific proposal.

The government's moves come after the collapse of Mt Gox, a Tokyo-based bitcoin exchange that closed in early 2014. Its CEO is currently in police custody under investigation for fraud.