The Japan Blockchain Association (JBA), the representative of the crypto industry in Japan, is calling for a review of the national tax regime for digital assets.
JBA recommends taking three key steps to ease the financial burden on crypto holders and encourage the use of crypto assets.
Japan Blockchain Association, advocate of blockchain industry in Japan, seeks regulation to crypto taxation
The Japan Blockchain Association (JBS) has called for a review of digital asset taxation in Japan. However, the JBA wrote to increase the crypto incentive, offering 3 recommendations.
First, the JBA is seeking the abolition of year-end unrealized earnings taxes on companies holding crypto assets. This includes removing taxes on unrealized gains in tokens issued by third parties.
The second request concerns the method of taxation for personal crypto-asset trading earnings. The JBA proposes the conversion from existing comprehensive taxation to self-assessed separate taxation with a uniform tax rate of 20 percent and proposes a three-year period for losses to be deducted from impairment of digital assets.
The third request includes the removal of income tax on profits made each time an individual exchanges crypto assets. JBA states that in the age of the borderless Web3, the exchange of crypto-assets could become the mainstream of the economic zone, and therefore calculating the tax would be extremely difficult.
The main purpose of these requests is to support the development and use of the crypto industry in Japan and to reduce the impact of the tax system on digital assets. Taking these steps is aimed at increasing Japan’s interest in the crypto industry and supporting Web3 development in the country.
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