Japanese Blockchain Association Seeks Crypto Tax System Overhaul
The Japan Blockchain Association (JBA) has requested a Tokyo government review of the taxation regime for virtual currencies, aiming to encourage more domestic companies to enter the Web3 sector. The organization, led by Bitflyer CEO Yuzo Kano, believes the taxation system hinders the growth of the Web3 business and promotes a digital asset ownership environment for citizens.
Japan’s National Tax Agency (NTA) has amended corporate tax rules to exempt firms from year-end unrealized gains from cryptocurrencies.
The association also seeks exemptions for unrealized profits from third-party tokens, as this burden hinders entry into the Web3 market. The association also suggests a separate self-assessment taxation method for individual crypto asset transactions with a flat rate of 20%. Losses should be carried forward and deducted in the three years following the year, reducing the tax. The Japan Crypto Asset Trading Association (JBA) reports a growing number of people opening crypto asset trading accounts in Japan, with 44% of respondents saying they would double their investments if they changed to separate self-assessment taxation.
(With inputs from Shikha Singh)
You need to login in order to Like
