Japan: The bitcoin market is all the rage !

The bitcoin market is all the rage !

In the land of the rising sun, bitcoin is recognized as a legal means of payment. Also, many are investing in their last pennies. Analysis of a new social phenomenon.

Many Japanese have become infatuated with the most famous cryptocurrency, now recognized as a legal means of payment in the country. In December, just over 31% of global bitcoin transactions were denominated in yen, behind the dollar (44%) but far ahead of the South Korean won (18%) and the euro (6%), according to jpbitcoin.com, Japanese site compiling industry data. The share of Japanese investors in this market has strengthened considerably since last year's ban on cryptocurrency trading in China.

Tokyo has taken the opposite path. A law that came into force in spring 2017 has recognized bitcoin and other virtual currencies as legal means of payment, while strengthening the transparency and financial soundness requirements of local market operators. These favorable regulations prompted already established Japanese online service groups to embark on this new niche, as thousands of businesses across the country began accepting bitcoin payments.

Fiscal Puzzle

Another consequence of the official recognition of virtual currencies in Japan could calm the heat: any profit from transactions on these markets will be considered as miscellaneous income, subject to a high tax rate, of the order of 55%.