A very prominent Japanese corporation is beginning to offer some loans, the most unique part? These loans are secured via cryptocurrencies. The company announced that this was the first move of its kind in both traditional and crypto markets. The loan is offered in Japanese currency, Japanese yen.
The corporation offering this service is known as ABIC Corporation, which announced last Friday the launch of its bitcoin loan service. “From June 1, we offer loans with virtual currency bitcoin (BTC) as collateral,” the company’s announcement reads.
Abic Corporation is one of the established banking giant and offers variety of loan products. These loaning includes commercial loans along with real estate loans. The bank was founded in 1973 and is around for a long time.
The company wrote,
“In Europe and the United States, services that provide ICOs [Initial Coin Offerings] and loans are increasing, with virtual currency as collateral such as bitcoins. Bitcoin secured loan is a service where [customers] can receive loans using bitcoin as collateral as its name implies, but it is Japan’s first service to receive [crypto-secured] loans in Japanese yen.”
The company explained one major benefit of obtaining this type of loan, In Japan, “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,”. This tax can be as high as 55%.
The bank surely will get much higher piece of the pie on every single case. This is what drives the decision of the company to fuse the crypto assets in traditional loaning structures.
Japan is one of the most crypto friendly countries around the globe. The Bitcoin and crypto assets are legal in Japan. Despite several regulatory over-reaches, the attitude of Japan towards crypto assets are much more positive than its counterparts in China and South Korea.
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