(Credit: Reuters) Some of Bitcoin enthusiast Mike Caldwell's coins are pictured at his office in this photo illustration in Sandy, Utah.

The government of Japan declared that it will not regulate Bitcoin transactions conducted within the country. The decision comes just a week after Tokyo-based Bitcoin exchange Mt Gox went bankrupt, according to TechCrunch.

NDTV cited Chief Cabinet Secretary Yoshihide Suga saying: "As a matter of common sense, if there are transactions and subsequent gains, it is natural... for the finance ministry to consider how it can impose taxes."

Since Bitcoin is not considered as an official currency in Japan, users to not need to procure banking license to conduct Bitcoin transactions. Along that line, banks are prohibited from supplying bitcoins to their clients. However, the cryptocurrency is considered a commodity, and therefore will be taxed, the report detailed.

If the Mt Gox collapse happens to other Bitcoin exchanges, the Japanese government cannot be held responsible for it. Japan does not have an official method for handling such bankruptcies, the report explained.

According to NDTV, the Japanese authorities are still following the bankruptcy process of Mt Gox. They are still trying to figure out the exact reason for the collapse of the said exchange, the report stated.