This is a very important matter on which lots of words have been spent since Satoshi Nakamoto invented this cryptocurrency. In fact, this definition has a lot of implications on how bitcoin is regulated, especially in terms of VAT and taxation in general.
Well, today Japanese regulators stated the decision to propose bitcoin among the methods of payments, so to define the digital cryptocurrencies as conventional currency.
In fact, Japan’s Financial Services Agency (FSA) wants to make “revisions to legislation that would classify digital currencies as fulfilling the functions of currency”, reported Coindesk.
At the moment Japan recognizes bitcoin as a property and not as a currency, but:
“Under the FSA’s proposed definition, virtual currencies must serve as a medium of exchange, meaning that they can be used to purchase goods and services. They must also be exchangeable for legal tender through purchases or trades with an unspecified partner”, said an article by
Nikkei.
This possible modification might be submitted during the current legislative session of the Japanese legislature which runs from 4th January to 1st June, even though this it is not official yet.
About the author: Amelia Tomasicchio is a writer and a journalist of Bitcoin-related news and articles. She started writing about Bitcoin in 2014 and she graduated in Rome with an essay about movie industry related to Bitcoin.
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