Japan Denies Bitcoin Is Currency

Tokyo, March 7 (Jiji Press)--The Japanese government does not recognize bitcoin as a currency, it said Friday. Bitcoin does not fall into the category of currencies, while incomes on bitcoin trading are taxable, the government said. The view was adopted at a cabinet meeting to answer parliamentary questions about bitcoin, traded online but backed by no central bank in the world. "It's obvious (bitcoin is) not a currency," Finance Minister Taro Aso told a press conference. Aso declined to comment on whether the government will regulate the virtual online currency. "Relevant agencies are collecting information and working to understand it," he said. Mt. Gox, a Tokyo-based major bitcoin exchange, filed for bankruptcy protection last week. It has lost about 11.4 billion yen worth of bitcoins, including those belonging to customers, as well as customer deposits of up to 2.8 billion yen, due to what it claims to be cyberattacks. END