There has however been a steady group of companies and investors who have put their faith in the cryptocurrency industry as the currencies of the future.
Japan has always been quick to embrace new technology as it looks to improve and advance from the rest of the world.
Japanese based company Abic Corporation recently announced that it has launched a bitcoin (BTC) loan service that will allow its clients to secure loans in the local currency by putting up their bitcoins as collateral. This service commenced from June 1 and the company expects a positive response as there are thousands of Japanese investors who have bought bitcoins over the last 18 months.
There are a number of benefits that Japanese investors can obtain by availing this special type of loan from Abic Corp.
In a statement, Abic Corp said
In the case of individuals, if you sell your own virtual currency, the capital gains on that sale will be miscellaneous income and will be subject to progressive taxation,” the company explained. This tax can be as high as 55%
Not Required To Sell Cryptocurrencies
Japanese cryptocurrency investors who were in need of fiat money would have been forced to sell their cryptocurrency in the past in order to liquidate and obtain the JPY (Japanese Yen). With this new loan service from Abic Corp, cryptocurrency investors in the currency no longer have to liquidate their BTC.
They can get in touch with Abic and put up their BTC as collateral and avail a loan in JPY. Customers can take advantage of this offer and use their cryptocurrency to obtain loans to pay their taxes as well as purchase more cryptocurrencies.
Loan Terms And Conditions
Abic Corp is currently offering loans for both individuals as well as businesses. The loan amounts start from 2 million yen ($18,000) and go all the way up to 1 billion yen ($9 million). The interest rates charged range from 2.9 to 15 percent and is determined based on the loan amount and collateral.
The loan duration ranges from 30 days to 5 years and no pre-payment or loan fee is required. There is a 20 percent delinquency fee due on a yearly basis and instalments up to 60 months can be availed.