July 1, 2017, In a historic move, today Japan has ended 8% consumption tax on Bitcoins The law goes into effect nationwide making it easier for Japanese to access the global markets via cryptocurrencies.
This move is slated to have a very positive ramification in the Japanese market in the months to come and a ripple effect is expected in other growing markets like India which is considering forming a framework around Bitcoin and other cryptos in general.
According to Bitflyer's CEO, Yuzo Kano who made the following comments officially to Bitcoin.com:
- Japanese users will no longer pay a higher rate and can send BTC without a price gap that existed due to the 8% tax.
- The psychologically positive effect of this move makes Bitcoin seem more like a "currency" even as it is only a new method of payment under the Japanese law and not considered as a "currency."
- Bitcoin exchanges will be able to buy bitcoins abroad. This is very important since resident exchanges have been taxed for buying virtual currencies (BTC and altcoins) from non-residents. Japan will finally have access to global markets.
Australia Removes Double Tax on Bitcoins
Today, Australia also ended double taxation on Bitcoins. These governments are allowing their people to use the latest technologies to improve trade and personal lives. There's a lot for the Indian government to consider here.
From July 1, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for GST purposes.
Now Australian citizens won't have to pay GST twice. Once on purchasing bitcoins then again when using it in an exchange or purchase of good or services that come under the GST law in the country.
How Does This Benefit Bitcoin Users?
- Change perceptions about Bitcoin and crypto and make them more mainstream.
- Easier to purchase and sell and make a decent income without losing out on profit margins due to higher taxes.
- Reduced administrative work for people in this sector.
- Ability to use Bitcoin to pay for bills, purchase goods and services online via e-commerce platform and pay for items in a retail store.
- Increased possibility of trade and commerce for citizens of these nations where Bitcoin is accepted as legal tender.
- New opportunity for local entrepreneurs to setup businesses around in this space.
Can India Learn From This?
- Bitcoin is being legalized in some of the biggest economies in the world.
- Technologically superior countries are adopting this technology and providing their people with a choice and new modes of payment.
- Reducing trade barriers can help the Indian economy grow at a faster rate.
- There are plenty of hurdles in doing any business and trade in India. Bitcoin makes it easier to make and receive payments. This alone can improve the entire business sector if BTC were allowed be a legal tender.
- Government needs to educate itself and the masses on the benefits of cryptocurrencies instead of cautioning them against use when many developed countries are legalising Bitcoins.
- It can lead to a boom in e-commerce and exciting new opportunities in this space.
- Opportunities for Indian startups to raise development funds through an ICO.
I could go on but as you can see, these are incredible times and I strongly believe that the Japanese and the Australian governments are doing a fantastic job to help their people take their lives and businesses to the next level by increased adoption of Bitcoin.
Thank you for your attention and support.
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