Taxation rules for crypto currency traders

Regulators all over the world have begun to address the challenges presented by virtual currencies that mostly bypass regulated banks, financial firms, exchanges and central clearinghouses. Blockchain and crypto-currency presents huge scope for their services due to the complexities involved in trading in crypto-currencies.

Many countries have formulated their regulations and consider crypto currency as the commodity and they have imposed taxes on the same, where as majority of the Asian countries prefer to impose a ban on these currencies. Major Asian countries including India and China banned the trades in Crypto currencies. Indian ministers have even gone a step ahead and called the Crypto currencies as Ponzi schemes. This article is a summary of the tax related provisions.

The sale of Bitcoin held for investment purposes is considered a capital gain or loss in Japan. The gains and losses from the Bitcoin or crypto currency trading, except for cases arising in association with activities that cause incomes such as business income, will be classified as miscellaneous income.

Source: https://www.regtechtimes.com/how-different-countries-are-taxing-crypto-currencies/