Japanese Company Offers Crypto Loans
Since June the 1st, Japanese company Abic Corporation announced that they will be offering crypto loans. This becomes the first service in Japan that will offer crypto secured loans collateral to country’s currency, Yen.
The Abic Corporation
The Abic corporation was founded in 1973 in Japan’s capital, Tokyo. Until today they offer loans for diverse markets, including real estate.
The Corporation claims that their Bitcoin secured loan service would be the first to act as collateral for people to receive loans in Yen.
Program benefits and terms
The crypto secured loans would benefit the users in many ways, including avoiding unnecessary taxation in their crypto assets. The users will be able to take crypto backed loans and get access to their funds without needing to actually sell them. Diverse markets could thrive grace to this project, including the acquisition of new virtual currencies.
The loans will be available to everybody – businesses and individuals. The loan period starts from one month and goes up to five years. The company will charge 20% annually for negligence. The customers can take loans starting from 2 million yen ranging up to 1 billion. The annual interest rate account about 3% to 15%.
Abic assured that during the time the customers hold their loans in Bitcoin as collateral, they will still receive any forked coins during that period. The company claims that their aim is to assure a correct division of assets.
Recently, the Japan’s National Tax Agency revealed that about 100 million yen from hundreds of taxpayers were declared as amounts in cryptocurrencies, which is considered as miscellaneous income. Over a longer period of time, taxation for progressive miscellaneous income can reach 55%.