Businesses are now officially allowed to accept Bitcoin as a form of payment in Japan after the Japanese Financial Services Agency (FSA) altered their Payment Service Act. This makes Bitcoin legal tender for all forms of transactions, including retail and online purchases.
These amendments were first put into motion during March 2017 but only came into effect on 1 April 2018. This gives Bitcoin newfound legitimacy in the country, which will likely encourage interest from businesses looking to start accepting Bitcoin payments. bitcoin-buyer.live/ can also help you to do safe bitcoin investments.
Previously Bitcoin was recognized as an asset rather than a currency; this new classification is expected to lead to further adoption of Bitcoin by both individuals and organisations alike. The FSA does intend to continue regulating Bitcoin though, with its main focus being security – making sure that consumers’ assets are protected from Bitcoin theft, Bitcoin fraud, and Bitcoin hacking.
This legislation comes after Bitcoin was officially declared a commodity in the US last December. Bitcoin is now treated as property in Japan too, which means that Bitcoin payment will be subject to the country’s capital gains tax at a rate of 55%. The FSA has also banned Bitcoin futures trading for speculative purposes in an effort to reduce Bitcoin market volatility.
Prior to this change in legislation, Bitcoin usage was already widespread in Japan with a number of businesses accepting Bitcoin payments including Newegg, Bic Camera, and Expedia. In fact, at one point approximately 50% of global Bitcoin exchanges were based out of Tokyo! There are even entire apartment buildings dedicated exclusively to Bitcoin users who wish to rent their properties exclusively through Bitcoin.
The greater Bitcoin market responded favourably to this shift in Bitcoin’s legal status, with Bitcoin prices increasing by more than 4% within hours of the news breaking. Japan is also planning on launching 6 Bitcoin exchanges nationwide sometime during the summer – presumably with faster trade clearing times to accommodate for Bitcoin’s higher price volatility.
If you are thinking about starting a Bitcoin business then it would be best that you attempt to learn and understand what Bitcoin is and how it works first in order to determine whether or not you will actually be able to accept Bitcoin payments in your store without too much difficulty. It might be difficult at first but once everything has been sorted out and set up, Bitcoin transactions should go through fairly quickly and smoothly without too many problems arising.
Another thing to keep in mind would be Bitcoin’s fluctuating price: Bitcoin prices can increase or decrease by as much as 15% or more overnight so you need to prepare for Bitcoin’s high volatility. This will likely mean that Bitcoin payments might not always go through as expected and may require manual adjustments to Bitcoin payment confirmations.
Finally, Bitcoin is not the only cryptocurrency out there – there are literally hundreds of other cryptocurrencies that could potentially overshadow Bitcoin and take over its market share if Bitcoin does not grow enough within a certain period of time; this means that you should keep an eye on the latest developments regarding Bitcoin and other cryptocurrencies and ensure that your payment systems allow for quick switching between different types of cryptocurrency (just like how traditional online merchants offer Bitcoin/USD or Bitcoin/EUR currency pairings).
Once you have Bitcoin up and running as a currency, it will be much easier to expand Bitcoin’s usage into other cryptocurrencies too. This will not only broaden Bitcoin’s user base but also increase Bitcoin’s value by making Bitcoin even more valuable than it already is. In this scenario, Bitcoin would essentially be the digital currency gateway for using any other cryptocurrency – similar to how Alipay serves as a gate between China’s currency (Renminbi) and all international currencies via their exchange system.
If you are still relatively new to the world of Bitcoin, then it may be best that you first familiarise yourself with Bitcoin basics before attempting to launch your own Bitcoin business. Read up on what Bitcoin is, how Bitcoin works, what Bitcoin does and doesn’t do, Bitcoin’s pros and cons as well as Bitcoin acceptance levels across the world. There are plenty of Bitcoin informational resources available both online and offline so it shouldn’t be too much trouble finding them.
If however you already have experience with Bitcoin and understand how Bitcoin works in general, then there should be no real need for you to refresh your memory on Bitcoin basics – you would likely already know more than what I just wrote here even if you aren’t a Bitcoin user yourself.