Japan will start to recognize bitcoin as a legal way of payment beginning on the first of April. The Japan’s legislature passed a regulation, following months of discussion, which introduced bitcoin exchanges under Anti Money Laundering and Know Your Customer regulations, at the same time as categorizing bitcoin as a type of prepaid payment tool. It’s a debate that started within the wake of the collapse of Mt Gox, the now-defunct bitcoin exchange that shuttered after months of increasing complications and revelations of insolvency and alleged fraud.
These regulations goes into effect tomorrow, putting in region capital necessities for Bitcoin exchanges in addition to cybersecurity and operational prerequisites. Further, so the cryptocurrency exchanges can also be required to conduct worker education applications and submit to annual audits.
However, there may be more work to go into this region. As an example, Nomura research Institute’s Yasutake Okano indicated in a May 2016 report that different eastern legal guidelines might also want to change to account for the technology, which includes the Banking Act and economic tools and exchange Act. Reports suggest that different organizations in Japan are moving to plug a number of those gaps as well.
The document from Nikkei writes that the Accounting requirements Board of Japan determined during this week to start developing requirements for cryptocurrencies like bitcoin. Its work mirrors different efforts being undertaken somewhere else, such as Australia, which started pushing for such requirements last 12 months.