The JBA is advocating for a reduction in crypto-related taxes to stimulate the growth of Web3 initiatives in Japan.
In Brief
The JBA is pushing for the elimination of the unrealized gains tax on cryptocurrencies at the end of the fiscal year.
They propose a shift in the tax structure for individual crypto transactions to allow for a distinct self-assessment system, which would feature a standardized tax rate of 20%.
Moreover, they advocate for the removal of income tax on profits attained through various cryptocurrency exchanges.
Under Yuzo Kano’s direction, the Japan Blockchain Association has taken steps to encourage the revision of crypto asset taxation in order to nurture the Web3 industry within Japan. formally petitioned the Japanese This initiative is designed to potentially enhance Japan's status on a global scale as a frontrunner in the Web3 realm.
The proposed revisions include:
- The proposal to eliminate the unrealized gains tax on digital tokens is central to their plan.
- They propose a shift in the tax structure for individual crypto transactions to allow for a distinct self-assessment system, which would feature a standardized tax rate of 20%.
- Moreover, they advocate for the removal of income tax on profits attained through various cryptocurrency exchanges.
Recent statistics from the Japan Crypto Asset Trading Association (JVCEA) reveal an increase in individuals opening trading accounts for cryptocurrencies. By April 2023, there were approximately 6.8 million new accounts, contributing to a total nearing 361 million.
If these tax reforms are enacted, Japan may positioned itself as a significant player in the Web3 arena, further fueling the growth of this emerging sector and enhancing the overall economic landscape.
| Related : The Bank of Japan is teaming up with 60 firms to conduct a trial for a digital version of the yen. |
About JBA
The Japan Blockchain Association (JBA) is committed to advancing Japan's economy by endorsing the use of blockchain technology, with the goal of making these systems safer and more reliable, ultimately supporting future economic growth.
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