On Saturday, July 1, the revised consumption tax law went into effect throughout Japan, and bitcoin transactions no longer incur consumption tax of 8%. On the same day, Australia also ended bitcoin double taxation. Bitcoin.com talked to Yuzo Kano, CEO of the largest Japanese bitcoin exchange by volume, to find out the real implications of this change in Japan.
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The Japanese government has approved the exemption of digital currencies, such as bitcoin, from consumption tax. The “Cabinet Order for Partial Revision of the Order for Enforcement of the Consumption Tax Act” went into effect on July 1. Bitflyer explained:
The Japanese consumption tax rate is currently 8%, which was scheduled to increase in April of this year. However, on June 1, 2016, Prime Minister Shinzo Abe announced that “the rise in the consumption tax to 10% and the introduction of the reduced …