Warnings of a potential “hard fork” in the blockchain shook the world of Bitcoin users, but we’re all flying high as values climb following Japan’s legal recognition of it as a valid payment method. A new law went into effect as of April 1st and just 3 days in, “Bitcoin trades up 2.8% at $1,133 a coin as of 7:08 a.m. ET on Monday”, according to Business Insider.
This law doesn’t classify virtual currencies such as Bitcoin, to be an actual currency, but rather an asset. It’s designed to enforce the regulation of exchanges by the Financial Services Agency (FSA) and require them to register with the Prime Minister. Proper regulation involves anti-fraud and anti-money laundering processes coupled with yearly audits.
Nikkei Asian Review wrote, “Under current Japanese accounting rules, holders of virtual currency can justifiably treat it as inventory on their balance sheets, while issuers can mark it down as a liability. But accounting standards do not specifically address digital currencies, leaving companies without guidance. Many simply leave such currency holdings off their books. Right now, there is no settled method of accounting for their use or changes in their value.”
In order to be recognized as a currency, there must be rules in place for tax reporting. As this is not yet the case with Bitcoin, it will be viewed as an asset until such framework is introduced.
Sources:
‘Bitcoin spikes after Japan says it's a legal payment method’, Jonathan Garber, businessinsider.com, April 3, 2017
‘Virtual money poses accounting dilemma for Japan's early adopters’, http://asia.nikkei.com, March 29, 2017
norman222
7 years ago
Sr. Newbie
I wonder how it will impact regular shops etc. Will they be forced to accept bitcoin payments? Display prices in bitcoins etc? This would mean increased costs especially nowadays when you have to change the prices due to high volatility of this currecny.
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Feelin froggy
7 years ago
Superstar Member
Hi rose, in the US, you'll need two e-wallets - one to buy bitcoin and a second to transfer the money to so you can fund your online casino accounts. Here's a link to another article on the subject. See the forum link there too, which has some really helpful information. https://jswqzs.com/news/coinbase-monitoring-accounts-for-gambling
Hi rose, in the US, you'll need two e-wallets - one to buy bitcoin and a second to transfer the money to so you can fund your online casino accounts. Here's a link to another article on the subject. See the forum link there too, which has some really helpful information. https://jswqzs.com/news/coinbase-monitoring-accounts-for-gambling
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rferry5
7 years ago
Sr. Member
can some one tell me how bitcoin works if you live in usa how does someone change it back to usa dollars. Never messed with bitcoin because not sure how it works or anything about this non currency thasnk rose
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nirvana
7 years ago
Super Hero
excellent news. I wondered why bitcoin price was up in the last few days . now i know why lol
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