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Japanese government says bitcoin must be internationally regulated

The Japanese government says bitcoins must be internationally regulated to avoid exploitable loopholes.

Published Thu, Feb 27 2014 11:46 PM CST   |   Updated Sat, Aug 8 2020 10:29 AM CDT

The Japanese government believes bitcoin regulation needs to be a global endeavor among U.S., European and Asian governments, which will keep it more secure from possible money laundering. Meanwhile, US Congress should look at effective manners to regulate bitcoin and other virtual currencies, said Janet Yellen, U.S. Federal Reserve Chair. Manhattan U.S. Attorney Preet Bharara wants to see how Mt. Gox and other bitcoin businesses or exchanges dealt with cyberattacks, which is a major security concern.

Japanese government says bitcoin must be internationally regulated | TweakTown.com

Since the bitcoin currency is unregulated, and no regular financial institutions are involved, there is concern over transactions - and taxes. Bitcoin owner identities also are not public information, so there is a certain underground feel to the still volatile currency.

"It's not just the Ministry of Finance; many other agencies are related," said Jiro Aichi, Japanese Vice Finance Minister, speaking during a recent news conference. "As for its legal position, a currency (under Japan's jurisdiction) would be coins or notes issued by the Bank of Japan. At the very least, we can say bitcoin is not a currency."

Despite the recent downfall of the Mt. Gox Bitcoin exchange, there is still a lot of talk surrounding the digital currency. While some retailers are using Bitcoin to provide another payment information for customers, other stores are worried about the constant change in Bitcoin value.

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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