Bitcoin fell again! Is it because Japan and Australia reduced transaction taxes?

Japan and Australia both reduced Bitcoin transaction taxes, which became the main reason for the sharp drop in currency prices?

On July 1, Saturday, Japan’s new consumption tax officially came into effect, and Bitcoin transactions officially no longer need to pay 8% consumption tax. On the same day, Australia also officially ended the double taxation of Bitcoin. Yuzo Kano, CEO of Bitflyer, Japan’s largest Bitcoin exchange, talked about the impact of this policy change on Bitcoin in Japan in an interview.

Bitcoin is no longer subject to transaction tax in Japan

The Japanese government has approved the exemption of digital asset transactions, including Bitcoin, from tax. The “Cabinet Order on the Enforcement of the Partial Revision of the Consumption Tax Act” came into effect on July 1. Bitflyer explained:

“On July 1, 2017, virtual asset transactions [purchase/sale] will officially no longer be subject to consumption tax.”

Japan's consumption tax rate is currently 8%. The Japanese government originally planned to raise the consumption tax to 10% in April this year, but Japanese Prime Minister Shinzo Abe announced that "the increase in consumption tax and the reduction in income tax rate will be postponed to October 2019."

Although the new version of the consumption tax abolishes the consumption tax on digital assets, there are still other taxes, such as personal income tax, capital gains tax or corporate income tax. Bitflyer explained, "If the income from virtual assets exceeds the personal level, it will be regarded as miscellaneous income and taxable. For companies, it will be regarded as business income."