Japan considers defining Bitcoin as a currency in order to regulate it

Japanese regulators have proposed recognizing digital currencies like Bitcoin as a method of payment, which would make them legally equivalent to the country’s traditional currencies, according to Nikkei.

Japan’s Financial Services Agency (FSA) is reportedly considering whether to revise legislation to define digital currencies as “performing the functions of currency.”

“They are now recognized as objects, but not equivalent to other currencies,” the report stated, adding:

“Under the FSA’s proposed definition, virtual currencies must function as a medium of exchange, meaning they can be used to purchase goods and services. They must also be redeemable for legal tender through an unspecified exchange partner.”

As a result, financial institutions will need to register with the FSA, a policy regulator believes could help prevent the collapse of Japanese bitcoin exchange Mt Gox, which lost nearly $100 million in customer funds in 2014.

Japan's Financial Services Agency did not immediately respond to a request for comment.

The news comes at a time when Japan is vigorously regulating digital currency exchanges and strictly enforcing KYC and anti-money laundering (AML) regulations.

The Nikkei added that the proposal is expected to be submitted during the parliamentary legislative session, which runs from January 4 to June 1, and any approved changes would be completed before the end of the session.

Original article: http://www.coindesk.com/japan-considers-regulating-bitcoin-as-currency/
By Pete Rizzo
Compilation: Overnight porridge
Source (translation): Babbitt Information (http://www.8btc.com/japan-bitcoin ‎)