Japan Decides Against Bitcoin Regulation, for Now

Ruling party, the LDP, has ruled out regulation for now, but a final decision is yet to be made.

AccessTimeIconJun 19, 2014 at 11:49 a.m. UTC
Updated Sep 11, 2021 at 10:53 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Japan’s ruling political party has announced that it is against regulating bitcoin for the time being.

The Liberal Democratic Party (LDP) made the statement as an interim measure, but the final decision will be made after hearing “more opinions” on the matter, said LDP lawmaker Takuya Hirai.

"Basically, we concluded that we will, for now, avoid a move towards legal regulation," Hirai told Reuters.

Mt. Gox fallout

Following the highly publicised collapse of bitcoin exchange Mt. Gox, Japanese authorities found themselves in the glare of the world's media spotlight.

The exchange was incorporated in Japan and several politicians were quick to demand rigorous regulation of the currency, including Senior Finance Minister Jiro Aichi who called for an international effort on bitcoin regulation in late February. There was no shortage of opposition, however.

Japan’s regulators argue that international collaboration is necessary due to the global nature of digital currencies, which easily transcend various jurisdictions and can be used to exploit loopholes in international law.

The Liberal Democratic Party launched an investigative committee into bitcoin back in March, later issuing a statement saying that bitcoin is not a currency, but stressing that it remains taxable. Japan had started looking into ways of taxing bitcoin in the weeks following the Mt. Gox collapse.

So far none of these efforts have resulted in new legislation for bitcoin or digital currencies in general. Judging by Hirai's latest statement, the nation is certainly in no rush.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.