According to Nikkei, leading media channels in South Korea, the National Tax Agency (NTA) in Japan, and Japan JoongAng have claimed that cryptocurrency investors and traders have reported over 1 million dollar profits by trading profits from digital currency.
Many countries, businesses and young generation are fascinated by cryptocurrency trading. Countries such as South Korea and Japan have shown great interest in Blockchain technology and cryptocurrency trading.
This news followed after the Japanese government, NTA and other financial authorities declared that all local monetary authorities would levy over 55% of taxes from earnings in non-operational profits from cryptocurrency investments.
Japan With Over 331 Millionaire Cryptocurrency Traders
Of the over 549 investors and traders, more than 331 individuals recorded non-working profits of more than $1 Million. NTA announced that the earnings were an essential sum for the tax authorities. Of all the earnings and profits, they were all related to virtual currencies.
According to research from Nomura Bank, Japan’s stagnated economy is gaining traction following last year’s improved BTC prices. The economy has been deteriorating for over 20 years, and the boost on consumption following cryptocurrency trading is good news.
Here’s a report from the investigation, “When some assets increase their value, it also means higher spending from the consumer. This is known as wealth effect,” explained the team in charge of the investigation and conducted by Yoshiyuki Suimon. “We measured the wealth effect of unrealized gains in Bitcoin trading by Japanese investors since the beginning of the fiscal year 2017, and we estimate a potential boost in consumer spending of between 23.2 billion and 96 billion yen.” Evidently, efficiency is increasing especially for expats and foreign investors.
Investment and trading activities on the digital currency platform boosted Japan’s GDP by 03% which further assisted NTA to gather funds for social infrastructure spending. With such positivity in the view of cryptocurrencies, it can be expected that laws and regulations related to virtual currencies will be favorable.
Countries such as the US, local financial authorities, and tax agencies had challenged companies such as Coinbase and best bitcoin wallets to track investor earnings from cryptocurrency markets, to enable tax collection. However, the Japanese government did not confirm the policy and regulations that are likely to influence the cryptocurrency markets. This heightened the doubts of traders and investors. According to Hiroyuki Komiya, Blockchain’s technology consultant, “The government hasn’t clarified certain details, so you are left unsure whether you have got it right or not”
However, the world of cryptocurrency noted that the number of investors and traders is relatively low. It is believed that there are other investors, who yet confirm their profits for filling. Here’s what an analyst had to say, “If the rapid growth of the cryptocurrency sector in late 2017 is considered, 331 is a number that is too low to be true. A large portion of cryptocurrency investors probably did not declare their earnings to the government.”
How Japanese Markets Continuously Experiences Growth from Digital Currencies
- Selling Bitcoin
Whether you think it’s time to do away with the bitcoin craze or just want to make some quick money, you can turn easily turn them into hard cash in two ways. What you choose will depend on the amount of control that you want to have on the price, the amount of time you have and the value of the bitcoin you are selling.
- Selling Through Exchanges
Exchange trades are arguably the simplest and most convenient method to turn your bitcoin into fiat currency. The exchange acts as a middleman between the buyer and the seller, providing you with a secure environment to trade your cryptocurrency. To do this, you need to create an account with the exchange and send your bitcoin to initiate the transaction. You may link your bank account to receive cash.
- Direct Sales
If you would rather have more control over the price and the entire sales process, direct sales are what will work for you. Also known as peer-to-peer trades, this method of selling is safer than other means, but it may take a considerable amount of time before you close a deal. It may also mean setting up an escrow account with your details.
Due to an increase in acceptance and adoption of bitcoin, more people around the world are investing in this type of cryptocurrency and significantly raising their value. However, before making any investment, you must be aware of the taxation aspect, legality angle, and the price volatility issues.