Japanese regulators looking to ease Crypto tax rules

Lavina Daryanani
Source: CoinGeek

While regulators around the world are making crypto rules and regulations more stringent, Japan is looking to ease things off. Per a recent report from Bloomberg,

Japan’s financial regulator proposed easing corporate tax rules for crypto assets… in support of Prime Minister Fumio Kishida’s efforts to reinvigorate the economy.

Alongside crypto, “lighter levies” for individual stock investors are also being considered.

Notably, Kishida’s “New Capitalism” vision seeks to boost Japan’s economy. The minister has pledged to double the wealth of households and has offered to support and help the country’s Web3 businesses grow. In the past, Kishida has also stated that metaverse and NFT-related developments will also be part of the nation’s growth strategy going forward.

In the annual tax-code change request on Wednesday, the Financial Services Agency proposed that companies should be exempted from paying taxes for paper gains on crypto coins that they hold after issuing them.

Notably, the regulator has also called for boosting a program that gives “tax breaks” to individual investors. Currently, profit from cryptocurrency holdings, including unrealized gains, is subject to corporate tax of about 30%. 

The crypto landscape in Japan

Per Bloomberg, crypto lobbying groups have been calling for changes, saying high corporate taxes have raised the bar for launching projects in Japan. However, the same had not stopped exchanges like FTX from exploring Japanese shores.

Read More: Moshi Moshi, Japan! FTX explores Japanese shores

Even before lending ears to lobbyists, Japanese regulators had been easing things off in the nation. Back in March, for instance, the Japan Virtual and Crypto Assets Exchange Association [JVCEA] announced that it was streamlining the procedure for approving new crypto listings to increase the number of coins traded in the nation to catch up with the rest of the globe.

Read More: Japan to Speed up Cryptocurrency Listings with a “green list”