The latest news is about the “Japan Blockchain” association and its urging Tokyo for a crypto-related tax reform that can invite investors to enter the market without fear of high capital gains taxation.
The government will now have to review its tax plan and decide whether to comply with the demands of the well-known Japanese association.
In the meantime, the cryptocurrency exchange Binance plans to re-enter the country during August, after suffering a warning from the regulator 2 years ago.
Full details below.
Tokyo: “Japan Blockchain” call to reform crypto tax system
On Thursday, 27 July, the “Japan Blockchain” association (JBA) submitted a call to the Tokyo government for tax reform for the cryptocurrency sector.
Its members argue that current regulations are an obstacle to the growth of the web3 industry, with potential damage to the country’s technological future.
In particular, high tax impositions discourage taxpayers from holding and using cryptocurrencies, which are already subject to high volatility and not insignificant operational risks.
Going into specifics, the JBA’s request is for the elimination of taxation on latent end-of-term capital gains on companies that hold cryptocurrencies issued by third parties.
Also petitioned is the introduction of separate self-taxation and the possibility of deducting losses as capital losses as well as the complete elimination of taxation during cryptocurrency trades
JBAは暗号資産に関する税制改正要望を政府に提出しました。引き続き実現に向け取り組んでまいります。
要望１．第三者発行による暗号資産を保有する法人への期末含み益課税撤廃
要望２．申告分離課税・損失繰越控除の導入
要望３．暗号資産同士の交換時における課税の撤廃https://t.co/OocJ6LtjiM pic.twitter.com/yWX32C2F9T— 日本ブロックチェーン協会／JBA（Japan Blockchain Association） (@J_Blockchain) July 28, 2023
The “Japan Blockchain” association led by the well-known Yuzo Kano, who serves as the CEO of the Bitflyer exchange, has made its vision explicit in relation to a change in the Japanese tax system that could attract many domestic companies to enter the blockchain sector.
Last month. Japan’s National Tax Agency (NTA) changed part of the rules on this sensitive issue, helping companies relieve themselves from taxation on year-end unrealized gains from tokens they issued themselves.
The Japanese association now also wants unrealized gains from crypto assets issued by third-party companies to be exempt from taxation.
In Tokyo, the JBA presented its thinking, explaining that a review of taxation along these lines could break down some barriers to entry, benefiting the country’s economy.
These are his words in a letter:
Hence, Japan could become one of the main hubs of the crypto industry in the coming years, going on to attract new investors and new companies.
After all, what to expect given that the nickname of the founding father of the Bitcoin protocol “Satoshi Nakamoto” comes from a Japanese name?
We stand by to see what the government’s next moves will be and to have an exact date for the reappearance of Binance in Tokyo and its vicinity.
In conclusion, it is deemed interesting to show this photo from 2015 depicting the Changpengh Zhao and Vitalik Buterin together precisely in Tokyo, where they were discussing Ethereum and its imminent launch to the markets.
CZ said that although he knew about the project from its early days, he did not buy ETH during his ICO and bitterly regretted it a few years later.
