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Japan considers Bitcoin tax after MtGox failure: Report

Published on Mar 4, 2014 1:31 PM

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

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

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

"However, many countries including Japan do not have concrete frameworks to levy taxes (on Bitcoin transactions)," the Yomiuri said, leaving officials basically stumped.

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