Bitcoin is being traded in the Japanese exchange market at a high premium. While the rest of the global market with the exception of South Korea stabilized at the $1,730 region, the Bitcoin exchange market is still continuing to process orders at an average Bitcoin price of $1,835.
Since the Japanese government’s approval of the Bitcoin legalization bill on April 1, Bitcoin price has been on an upward trend. The legal clearance from the Japanese government coincided with the approval of a bill which exempts Bitcoin from consumption tax.
According to Deloitte Japan, the Japanese National Diet passed a series of tax reform bills in March which will effectively exempt Bitcoin from consumption tax starting July 1.
In a document to its clients entitled “Japan: Inbound Tax Alert, 2017 Reform Proposals,” Deloitte wrote:
“The supply of virtual currency will be exempt from Japanese Consumption Tax (“JCT”). Currently, virtual currencies such as Bitcoin do not fall under the category of exempt sales, and as a result, the sale of virtual currencies in Japan have been treated as taxable for JCT purposes. Following the enactment of the amended Fund Settlement Law in May 2016, which newly defined “virtual currency” as a means of settlement, the sale of virtual currency as defined under the new Fund Settlement Law will be exempt from JCT. This change will apply to sales/purchase transactions performed in Japan on or after 1 July 2017.”
Wow that will give people a huge incentive to get into Bitcoin. I would imagine that it being exempt from consumption tax is only going to cause the price of Bitcoin to go up further. I like the information here good work.