Japan seeks international collaboration on bitcoin regulation

E-commerce

by CBR Staff Writer| 28 February 2014

Japan is looking to collaborate internationally on regulating crypto-currency bitcoin, in efforts to avoid loopholes, following the recent closure of Tokyo-based bitcoin exchange Mt. Gox.

Jiro Aichi, the country's vice finance minister, noted that such coordination is required to prevent hackers from exploiting loopholes or weak points in international policies.

"It's not just the Ministry of Finance; many other agencies are related," he said.

"As for its legal position, a currency (under Japan's jurisdiction) would be coins or notes issued by the Bank of Japan. At the very least, we can say bitcoin is not a currency."

Mt. Gox, once the world's biggest exchange for the virtual currencty, shut its services after reporting an alleged loss of $350m.

The exchange is currently working to find a solution to the problem that emerged earlier this month with a bug in the Bitcoin software that allows hackers to trick the transaction process into sending double the correct number of bitcoins in a transaction.

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