Japan: tax breaks proposed for crypto investors
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Loading... - Chiyo Gato
- 21 Sep 2022
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Japan wants to boost its economy tied to crypto companies
The current Japanese government, and in particular the Prime Minister, Fumio Kishida, is studying various incentives to reinvigorate the country’s economy, and apparently among them may be some related to the cryptocurrency sector.
According to Bloomberg reports, the proposal would cover a tax exemption for companies that issue cryptocurrencies, and it would also call for the enhancement of a tax relief program for individual cryptocurrency investors.
It should be noted that a 30% tax on cryptocurrency profits, including unrealized profits, is currently levied in Japan, so much so that several cryptocurrency companies in the country have been pressing for a reduction.
In particular, the Japan Cryptoasset Business Association (JCBA) and the Japan Virtual and Crypto Asset Exchange Association (JVCEA) have been complaining for some time now, so much so that they in turn have already submitted a proposal to this effect to the Japan Financial Services Board (FSA).
This proposal has the support of some local politicians, so the FSA may have decided to make it its own.
The current situation has been leading several Japanese cryptocurrency companies to relocate abroad, particularly to Singapore, for some time now. Therefore, the government might also take up FSA’s proposal to curb this hemorrhage.
Japan realizes that it has fiscal pressures that are too high for the cryptocurrency sector
Fumio Kishida’s innovative vision
It should be kept in mind that Prime Minister Kishida, who has been in office since October last year, has his own economic vision dubbed “New Capitalism” with which he would like to revive the Japanese economy. Indeed, he has even pledged to double household wealth by, for example, offering support to help Web3 businesses. Read More...
