Proposal to Regulate Cryptocurrency Taxes from Japan

According to a report by Bloomberg, in japan Working on the reorganization of cryptocurrency regulations.

The Japan Financial Services Agency has prepared a new bill to completely abolish the corporate tax on cryptocurrencies. According to the agency’s draft law, income from cryptocurrencies will no longer be taxed. It is still unclear whether the tax cut will be taken only on coins or if it will cover all crypto services.

already in the country cryptocurrency The tax rate on income is around 30%.

Why Are Crypto Taxes Reducing?

According to Bloomberg, the main reason for this law change is the slowdown in economic activity in the country. The Japanese government is quite disturbed by the economic recession in the country.

In addition, organizations providing services in the field of crypto money in the country also complain about taxes. Bloomberg states that companies have made a request to the government that crypto investments are shifting from Japan to Singapore due to high tax rates in the country.

The economy stimulus package isn’t just about cryptocurrencies. It is planned to reduce tax rates on all kinds of investment income.

Japanese Prime Minister Fumio Kishida is known for his warm view of cryptocurrencies and blockchain technology. The Prime Minister spoke about cryptocurrencies in a speech he delivered in his country’s parliament this New Year’s Day:

“I believe that if new digital phenomena such as NFTs and Metaverse are more easily accessible in our country, Japan can grow even more economically. A new Web3 era is beginning, our country must catch up with this trend and exist in this area.”