On Friday, Abic Corporation has declared the introduction of its bitcoin loan service.
“From June 1, we offer loans with virtual currency bitcoin (BTC) as collateral,” stated the company’s announcement.
In 1973 the said company was founded and it had its first headquarters in Tokyo where Abic Corporation offered a extensive array of secured loan products such as 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 said.
This is one major benefit of obtaining this type of loan in Japan whereas the tax can be as high as 55%.
“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.
It highlighted that their securely crypted loans have given the customers access to funds without having to sell their crypto. The company has also advised their customers to use such loans “for a wide range of purposes such as new virtual currency purchases, [and] tax payments.”
On recent reports, Japan’s National Tax Agency has exposed 331 taxpayers with 100 million yen or even more for its miscellanous income that even has excluded pension income as they have declared through their cryptocurrencies in 2017.
Abic Corporation offers crypto secured loans for both businesses and individuals whereas the loan accounts could amount to between 2 million and 1 million yen accompanied with annual interest rates ranging from 2.98% to 15.0%.
For five years and one month, clients can already borrow where loans can be paid by up to 60 installments without payment as delinquency charge is 20% annually.
The company has also assured their customers that as they hold bitcoins as collateral, customers can still receive any forked coins which may split up during that time.
“Even if you receive loans with bitcoins as collateral, there is no worry that the right in division will be lost,” Abic stated.
This week, there were also other reports on a group of lawyers that have been preparing for filing a class law suit which will be up against crypto exchanges in Japan that do not grant their customers their forked coins.