Japan is considered by a global leader in the development of cryptocurrency, Cryptocurrencies have become a major financial product that can be alternatives to stocks, foreign exchanges, and bonds in Japan, Japan has been the most accepting country of Blockchain technology at the time of this technology was introduced into the general. There are around 4500 stores that will be accepting Bitcoin payment in Japan.
Japan has become the world’s first economy to regulate cryptocurrencies, the Japanese Government has introduced the new Regulations for cryptocurrencies.
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Financial Services Agency(FSA)
Financial Services Agency(FSA) is one of the Japanese government entities, it overseeing the banking, insurance, Securities and crypto exchanges. The main role of this Financial Services Agency is to ensure the stability of japan’s financial system.According to FSA, cryptocurrency exchange businesses are to submit their reports and must keep records of their cryptocurrency transactions.
In Japan cryptocurrency-based businesses have to submit entire data’s about their customers, this information would include names, addresses, personal identifications and numbers. This will helps to prevent hacking. It also warns token purchasers about the high-risk nature of token it includes the high volatility of token price and potential risk of fraud. FSA also orders a Virtual Currency Exchange service provider to take necessary measures to improve its business operation or financial condition.
Japanese government states that it is important to get a Bitcoin Wallet for Investors before buying a Bitcoin Because some exchanges require users to first get a wallet where they will store their digital assets or tokens, it helps users to prevent from many hacking incidents in Japan. Japanese investors and exchange platforms have played a major role in pushing cryptocurrency Valuations to new highs.
Coincheck - It is a major cryptocurrency exchange and digital wallet company in Japan and also one of the largest exchange platforms in Asia. It will support multiple altcoins, it doesn’t need any identity verification.
Bitflyer - is one of the largest Bitcoin exchange in Japan, By using this Platform you can deposit funds via credit card or bank transfers, it charges 0.15% for their trading volume. It doesn’t need any identity verification and it will work from 9 am to 7 pm only on weekdays.
Bitocean - is another popular digital cryptocurreny exchange in Japan, it is more stable and safe and also focus on security and maintain high transparency for customers.
Bitfinex - It is a Hong Kong-based Bitcoin exchange Platform and also one of the largest USD Bitcoin exchanges in the world. It will charge only 0.1% for the transactions and also it the best way to buy a large number of Bitcoins and supports several altcoins.
These Bitcoin exchange platforms in Japan make it easy for investors who are looking to choose a cryptocurrency exchange and also highlighting their important criteria such as transaction fees, ease of use, withdraw limits, payment modes, reputation, and security.
The lawmakers in Japan have proposed a separate tax rate of 20% on gains from cryptocurrencies as compared to the current maximum tax rate of 55% in Japan and Regulators are pushing for a rule that allows investors to carry forward their cryptocurrency. Japanese Government is developing software to note those who are not paying the appropriate taxes made from cryptocurrency trading. Japanese National Tax Agency(NTA) says that any profits obtained from trading cryptocurrencies fall under the income tax act, so the individuals must pay tax on their profits if they are earnings above 200,000 yen($1,700) per year. The Government of Japan had removed 8% of consumption tax on Bitcoin in 2017.
BearTax - Cryptocurrency Tax Software for Japan- helps you to consolidate and calculate tax liability for the cryptocurrency traders in Japan.
Cryptocurrency profits to be taxed at a uniform rate
Capital Gain Tax - 20.315%
National Tax - 15.315%
Local inhabitant’s Tax - 5%
Source - Japan revise the crypto tax
There are around nine Bitcoin ATMs in Japan, Six of them located in Tokyo, and two of them in Fukuoka, the advantage of using this Bitcoin ATMs you can easily buy Bitcoin by using your debit card and also get your tokens almost instantly, this will takes 5 % to 10 % for your transactions fees.
Mitsubishi UFJ Financial Group Inc.(MTU) is one of the japan’s largest financial group and the world’s second-largest bank holding company, release its own coin in March 2018, This MUFG crypto coin will equal with the Japanese yen and it will be first issued to employees of the financial services group it enables standard transactions such as shopping or transfer of money between individuals at much lower costs as compared to credit cards.
In order to use this crypto coin user will have to create a crypto wallet, Mitsubishi UFJ Financial Group Inc.(MUFG) will handle the processing of these crypto transactions internally.
Bitcoin is a legal tender in Japan so people want to start their crypto-based business in Japan because of its crypto-friendly nature and good economic growth and also Bitcoin is a legal tender in Japan.
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