Japan looking at Bitcoin tax after failure of Mt Goxhttps://indianexpress.com/article/business/world-market/japan-looking-at-bitcoin-tax-after-failure-of-mt-gox/

Japan looking at Bitcoin tax after failure of Mt Gox

Japan’s finance ministry is studying possible rules that could govern transactions using the digital currency.

Japan is looking at ways to tax Bitcoin transactions, a report said Tuesday, in the wake of the spectacular failure of the Tokyo-based MtGox exchange after a half-billion-dollar theft.

Japan’s finance ministry and the national tax agency are studying possible rules that could govern transactions using the digital currency, the Yomiuri Shimbun newspaper said.

Japanese authorities believe purchases made with Bitcoin can be subject to consumption and corporate taxes, even though the unit is not a legal currency, the newspaper said without citing sources.

The Yomiuri report came as regulators around the world grapple with the crypto-currency, which is generated by complex chains of interaction among a huge network of computers.