Japan Blockchain Association Suggested Cutting Crypto Taxes to Boost Web3 Business
In Brief
JBA suggests removing the year-end unrealized gain tax on tokens;
Modifying the tax approach for individual crypto asset transactions to a separate self-assessment tax system, implementing a flat rate of 20%;
Removing income tax on profits generated from each crypto asset exchange.
The Japan Blockchain Association (JBA), led by Yuzo Kano of bitFlyer Inc., has formally petitioned the Japanese government to revise the taxation of Crypto Assets. This move aims to stimulate the growth of the Web3 sector in Japan.
The proposed revisions include:
- Removing the year-end unrealized gain tax on tokens;
- Modifying the tax approach for individual crypto asset transactions to a separate self-assessment tax system, implementing a flat rate of 20%;
- Removing income tax on profits generated from each crypto asset exchange.
Recent data from the Japan Crypto Asset Trading Association (JVCEA) indicates a steady rise in the number of individuals opening crypto asset trading accounts in Japan. As of April 2023, approximately 6.8 million accounts have opened, reaching the total number of accounts (around 361 million accounts).
Should these proposed tax reforms be implemented, Japan could gain recognition both domestically and internationally as a leading nation in the Web3 space. Concurrently, this could spur the expansion of the Web3 economic zone, a burgeoning industry, and contribute to the future prosperity of the Japanese economy.
About JBA
The Japan Blockchain Association (JBA) is an organization dedicated to fostering the growth of the Japanese economy by promoting the adoption of blockchain technology. It aims to make this technology safer and more secure, positioning it as a key mechanism to support the future development of the Japanese economy.
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