Japan Confirms Bitcoin As Legal Tender

Japan has signed a new law that will make Bitcoins acceptable as legal tender. The regulations are albeit strict to curb malpractices using Bitcoins but also have a disadvantage of not being fair to small businesses.

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Businesses hoping to deal with Bitcoins are expected to have at least $100,000 in reserve currency, submit regular reports of their activities to government and undergo routine external audits by the Japanese National Tax Agency.

A license will also be needed before operations can be commenced and this license will cost companies about $300,000 and there is no guarantee that their request for a license will be granted. This huge price tag will likely discourage small businesses from adopting the currency.

Japan has been known for its reputation for being futuristic and how the Japanese government is usually in agreement with cryptocurrencies such as bitcoins.

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