Japan looks to set out rules on handling bitcoins

Mar 05, 2014, 6:13 AM EST
A worker holds a sign at the first bitcoin retail store open in Hong Kong on February 28, 2014 in Hong Kong.
AFP/Getty Images

Japan will this week set out rules on how to handle bitcoins, the first sign that the government is taking action on regulating the virtual currency after the collapse last week of Tokyo-based Mt. Gox, once the world's dominant bitcoin exchange. The cabinet will decide on Friday how to treat bitcoins under existing laws, said people familiar with the matter, adding that banks and securities firms will not be able to handle bitcoin as part of their main business, suggesting the crypto-currency will be treated more as a commodity, like gold.
Background:
Japan may tax bitcoin deals, stop banks, brokerages from handling [Reuters]
Bitcoin bank Flexcoin shuts down after massive theft [PCWorld]

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