Emphasizing that its crypto secured loans give customers access to funds without having to sell their crypto,
They do really trust out their citizens with this kind of system and its good to see that they are already applying crypto for the benefit on taking a loan thru fiat but one thing comes to my mind or hesitates me about that 55% taxation. Seriously?
Topic: [2018-06-03] Japanese Corporation Begins Offering Loans Secured by Cryptocurrenc (Read 147 times)
June 03, 2018, 03:49:18 PM
June 03, 2018, 02:13:41 PM
I was wondering how much collateral you will need in order to get the loan. The article didn't specify anything about any amount, still only real estate has the highest loan to value around 70% - 75% anything other than that may make the bank to require you more collateral in order for your desired loan to be granted. And Bitcoin being a volatile currency I am expecting that it will have a lower loan to value given by its nature, and the security company will be on the advantage here if this happen.
June 03, 2018, 12:59:00 PM
Seeing the title I thought at first that the terms for loans will be ruthless, but in fact they are not. According to the article annual interest rates will range from 2.98% to 15.0%, which is not so bad compared to some terms on loans I see in various gambling forums. It looks like the Abic Corporation really wants to do business rather than just rob their customers. Also the the delinquency charge is 20% annually which is not so bad either. I'm not encouraging anyone to take loans, in fact it's better not to, but if a Japanese citizen will be willing to do it anyway, Abic Corporation offers pretty reasonable terms imo.
June 03, 2018, 10:59:24 AM
An established Japanese corporation has begun offering loans secured by cryptocurrency. The company says this is the first service in Japan where loans in Japanese yen can be obtained with cryptocurrency as collateral.
New Loan Program
Abic Corporation announced 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.
Founded in 1973 and headquartered in Tokyo, Abic Corporation offers a broad range of secured loan products including commercial and real estate loans.
“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,” the company wrote, elaborating:
One major benefit of obtaining this type of loan is that, 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,” the company explained. This tax can be as high as 55%.
Emphasizing that its crypto secured loans give customers access to funds without having to sell their crypto, the company urges customers to use its crypto secured loans “for a wide range of purposes such as new virtual currency purchases, [and] tax payments.”
Recently, news.Bitcoin.com reported on Japan’s National Tax Agency revealing that 331 taxpayers with 100 million yen (~US$914,000) or more in miscellaneous income, excluding pension income, declared cryptocurrencies in the year 2017.
Read more: https://news.bitcoin.com/japanese-corporation-loans-secured-cryptocurrency/
New Loan Program
Abic Corporation announced 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.
Founded in 1973 and headquartered in Tokyo, Abic Corporation offers a broad range of secured loan products including commercial and real estate loans.
“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,” the company wrote, elaborating:
Quote
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.
One major benefit of obtaining this type of loan is that, 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,” the company explained. This tax can be as high as 55%.
Emphasizing that its crypto secured loans give customers access to funds without having to sell their crypto, the company urges customers to use its crypto secured loans “for a wide range of purposes such as new virtual currency purchases, [and] tax payments.”
Recently, news.Bitcoin.com reported on Japan’s National Tax Agency revealing that 331 taxpayers with 100 million yen (~US$914,000) or more in miscellaneous income, excluding pension income, declared cryptocurrencies in the year 2017.
Read more: https://news.bitcoin.com/japanese-corporation-loans-secured-cryptocurrency/
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