Regulators in Japan have proposed treating virtual currencies like fiat currency.
Currently Bitcoin and other digital currencies are treated as property similar to the way the Internal Revenue Service in the United States treats them, the proposal would change the definition of virtual currencies to serve as a medium of exchange to purchase goods and services.
The now imploded MtGox lost millions worth of bitcoin in 2014 and a likely factor in the proposal as they were based in Japan. Japanese regulators have been discussing bitcoin regulation ever since and this would open up other enforceable laws in Japan as well as strict monitoring. Victims of the MtGox implosion have yet to see a penny back from the now defunct exchange.
Exchanges and other institutions dealing in virtual currencies would have to register with Japan's Financial Services Agency. The FSA in Japan is comparable to FinCEN in the United States or Australia's AUSTRAC and the registration would put these companies under closer review.
Considering what happen at MtGox, this might not be a bad thing at all. What is certainly good news is the additional legitimacy the definition would provide for bitcoin and virtual currencies alike.
|Japanese Diet Session - Session Fight|
We'll know more on this sometime between now and June when the changes are submitted prior to the end of the Diet session. Let hope that goes well, that has been known to get way out of hand in the past with fist fights breaking out during session.
So long as Mark Karpelès isn't present, there should be a good chance of a smooth session. If he were to show up for some reason then all bets are off.
Story by dinbits
image by dinbits staff