CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Japan refuses to recognise Bitcoin

Article By: ,  Financial Analyst
March 7, 2014 9:45 AM

Japan's government has stated that some transactions using the virtual currency Bitcoin ought to be taxed, though it says it should not be recognised as a currency.

Bitcoin has been one of the largest stories in the currency world in the last 12 months, with worldwide governments split on how to deal with its rise.

Russia has banned the use of Bitcoin completely, while it is heavily regulated in China.

However, nations such as the US and the UK have been much more open to the virtual currency and there are a number of bricks-and-mortar locations where Bitcoins can be spent in these countries, although the vast majority of Bitcoin transactions are still carried out online. HM Revenue and Customs recently confirmed that it would not be charging any VAT on Bitcoin transactions. Singapore, in contrast, has imposed a tax on Bitcoin trading and stated that it should be seen as goods.

"If there are transactions and subsequent gains, it is natural…for the finance ministry to consider how it can impose taxes," said chief cabinet secretary Yoshihide Suga.

Bitcoin range

The market for Bitcoin is estimated to stand at more than £4 billion, although it is difficult to gauge how much of the virtual currency is out there because many of the people who have invested in Bitcoins do not speak about it in public.

Bitcoin hit the headlines last year when a man from the UK who had mined some of the virtual currency realised he had discarded the hard drive on which the virtual currency was stored. It was believed that the hard drive had ended up on a landfill site and there were media reports of intrepid treasure-hunters heading down to try and find it. It is thought that more than a £1 million worth of Bitcoins were on the hard drive when it was thrown away.

There was a blow for the rise in Bitcoin activity recently though, as the main exchange for the virtual currency – MtGox – closed down and later declared bankruptcy, resulting in the value of Bitcoin taking a sharp dive.

Learn about the sterling and forex trading at City Index

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024