Cryptocurrency lobbying groups in Japan reportedly intend to pressure lawmakers into easing taxation on cryptocurrency companies in order to nurture the local digital asset sector.
Crypto Friendly Policies Can Stop the Brain Drain
According to Bloomberg, The Japan Cryptoasset Business Association and the Japan Virtual and Crypto assets Exchange Association, two of the country’s top crypto lobbying organizations, intend to submit a proposal to the Financial Services Agency.
The proposal aims to lower tax regulations and establish a better environment for domestic digital asset businesses. Currently, profit from cryptocurrency holdings, including unrealized gains, is subject to corporate tax of about 30%. Individual crypto investors could be taxed for up to 50%.
"Japan is an impossible place to do business. The global battle for a Web3 hegemony is underway, and yet, Japan isn't even at the start line," Sota Watanabe, Chief Executive Officer of Web 3.0 infrastructure developer Stake Technologies Pte told Bloomberg The hostile crypto environment forces local companies to relocate to Singapore and other nations with more welcoming policies. The proposal from the lobbying organization hopes to buck this trend and keep the majority of Japanese crypto talent in the country.
If the proposal is approved, local businesses won’t be required to pay taxes on the paper gains they make on crypto investments if held for reasons other than short-term trading. The proposal will reach monetary watchdogs as early as this week.
The commitment administration of Prime Minister Fumio Kishida’s to advancing Japan’s Web 3.0 sector marks part of an effort unveiled last month. The high taxation policy is a hot topic in question, and stands to test how serious the government is about embracing the country’s crypto industry.
Why You Should Care
- Japan is a Group of Seven (G7) member, marking it as one of the largest and most developed global economies.
- Tokyo, Japan, is the #4 city in the world in terms of crypto friendliness.
- Digital operations last year saw an increase of more than 50% from 2020, reaching a cumulative value of approximately 103 trillion yen (or $900 billion USD).
More about crypto regulation in Japan:
https://dailycoin.com/japan-passes-stablecoin-bill-to-protect-crypto-investors/
More about brain drain in Asia due to high taxes:
https://dailycoin.com/indian-government-drives-crypto-exchanges-to-leave-for-singapore-and-dubai/