Japan btc Japan's Crypto Advocates Propose Tax Cuts to Keep Talent from Leaving

Japan’s Crypto Advocates Propose Tax Cuts to Keep Talent from Leaving

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– Japanese cryptocurrency advocacy groups will petition the government to relax corporate tax regulations, allowing the growth of the countrys digital asset industry.
– The Virtual and Crypto Assets Exchange Association (JVCEA) and Cryptoasset Business Association (JCBA) are getting ready to submit a proposal to the Financial Services Agency (FSA) asking it to cut the cost for businesses to issue and hold cryptocurrency tokens.
– Japans Web3 brain drain due to taxation
– Currently, Japan levies a 30% corporate tax on digital assets, including unrealized gains. Lobby groups will push the government to suspend taxing paper profits on cryptocurrency holdings if businesses own them for reasons other than short-term trading, according to the document.
– The groups want to reduce the present rate of taxation on individual investors from up to 55% to 30%.
– In April, the operator of BitFlyer, one of Japans leading cryptocurrency exchanges, was bought by ACA Group, a Japanese private equity group with offices in Singapore, which is a lower-tax jurisdiction.
– Japan is an impossible place to do business, Sota Watanabe, chief executive officer of Web3 infrastructure developer Stake Technologies, told Bloomberg.
– The proposal may be presented to the authorities as early as this week, a JCBA official said.
– Earlier this month, the countrys Ministry of Economy, Trade, and Industry (METI) established a Web3 policy office to not only collaborate on the digital front but also to understand the challenges of the sector better.
– And one of the biggest banks in Japan, Sumitomo Mitsui Banking Corporation (SMBC), also recently announced its intention to move into the non-fungible token (NFT) and Web3 space.

 

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