BREAKING: According to Reuters, Japan will not regulate Bitcoin in the nearest future. Japan's Liberal Democratic Party has decided to go against Bitcoin regulation in the aftermath of the Mt. Gox failure. Bitcoin has been under scrutiny by the authorities in Japan, the temporary conclusion by the Liberal Democratic Party is therefor somewhat surprising.
The Liberal Democratic Party lawmaker Takuya Hirai, who leads the party's internet media division, said on Thursday:
Basically, we concluded that we will, for now, avoid a move towards legal regulation
He also told that a final decision on Bitcoin regulation will have to be made after a more thorough analysis.
The use of electronic currencies has drawn the attention of governments around the world who are unsure whether, and how, to regulate them. U.S. agencies ranging from the New York bank regulator to the Commodity Futures Trading Commission have also been looking into possible regulation.
A task force of U.S. state regulators is also working on the first bitcoin rulebook, hoping to protect users of virtual currency from fraud without smothering the fledgling technology.
Bitcoin Regulation inevitable?
The question we must ask ourselves is whether or not governments and authorities can leave Bitcoin out from their regulated markets, which is highly questionable. One of the most important tasks of a country is to regulate their economic activities, including their national currency for e.g. import and export control. If Bitcoin becomes as big as many of us in the cryptocurrency community believes, then countries might not have any other choices than implement different regulations on Bitcoin.
This is not necessarily a bad thing for Bitcoin. Bitcoin would be seen as more legitimate if a country has implemented legal regulations on the cryptocurrency. It can even make the Bitcoin economy prosper in countries that proactively regulate Bitcoin.
So what about Japan now? All they have said is that they need more time to look at the different sides of Bitcoin and the best ways to regulate it (or not). In the end I believe countries will follow the lead of the US when it comes to Bitcoin regulation.
What do you think? Write in the comment field below.
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