japan, tax, exchange

Source: iStock/mura

Japanese cryptoasset-related firms have urged the government to make tax reforms – claiming that the current system is out of sync with tax rules in other countries.

The proposals come from the Japan Cryptoasset Business Association (JCBA) and the Japan Virtual Currency Exchange Association (JVCEA), which, per CoinPost, released a joint report calling for tax reform in 2023.

The bodies also addressed the press and spelled out their aims, which chiefly centered on the need to simplify the crypto tax filing process. It also pointed out “inconsistencies” within the existing system. And, as well as noting that Japan’s policy is out of step with “overseas cryptoasset tax systems,” the bodies insisted that crypto has a key role to play in the world of Web3.

The latter point may well catch the eye of senior lawmakers in the ruling Liberal Democratic Party (LDP), which has launched a Web3 taskforce. The taskforce, too, has spoken of the need to reconsider Japan’s crypto tax rules – amid claims that overly restrictive protocols are forcing companies, talent, and capital abroad. Opposition leaders have also become vocal in their own calls for change.

The crux of the issue is that crypto is currently classified as “other income” in tax declarations. This is quite unlike the picture in other countries, where crypto is usually subject to capital gains tax rules. In many nations, crypto-related profits are not taxed at all until coins are converted to fiat.

But in Japan (and under current rules), the rate at which crypto-related income is taxed depends on the total income of an individual. This means that crypto tax payments – in the case of higher earners – can rise to around 50%.

Foreign exchange trading, by contrast, is subject to a flat 20% capital gains tax levy.

The JBCA stated that it had conducted an investor survey, speaking to over 26,000 people – and claimed that data from this survey showed that the tax reforms it was suggesting would actually lead to “an increase in the number of taxpayers” and would “not necessarily lead to a decrease in national revenue” from crypto tax.

The body further claimed that it had conducted “trial calculations” on the basis of a 20% capital gains tax levy – and found that tax revenue would actually increase under this system “by about 20%.”

However, these calculations appear to have taken into account the fact that there would likely be an increase in demand for crypto should the tax reforms take place.

The body, which mainly represents crypto-related firms claimed that “if things continue in the status quo, the taxation system will become a bottleneck for the spread of cryptoassets.” This would hamper the “development of products and services in Japan” and leave the country lagging behind Asian, European, and American counterparts in the Web3 era, the body said.

It further added that the level of regulation that the crypto sector was now conforming to in Japan was “inconsistent” with the existing tax rules – suggesting that the industry was becoming even “more sound” than the world of traditional finance. As such, the JBCA suggested, a more lenient tax system was now appropriate.

TECH NEWS RELATED

Bollywood-like Drama Erupts as CZ Moves to Distance Binance from India’s WazirX Exchange

Source: Adobe/Krakenimages.com A bitter dispute about the ownership of WazirX, an Indian crypto exchange that is being probed by the nation’s law enforcers over suspected money laundering allegations, has descended into a Twitter-based face-off between the Binance CEO Changpeng “CZ” Zhao and the WazirX Founder Nischal Shetty. Binance announced ...

View more: Bollywood-like Drama Erupts as CZ Moves to Distance Binance from India’s WazirX Exchange

A Guide on Staking TRX in NOW Wallet

Disclaimer: The text below is an advertorial article that is not part of Cryptonews.com editorial content. A TRX staking option is now available in NOW Wallet, a non-custodial wallet developed by the team behind ChangeNOW. Staking is an easy and reliable way for crypto enthusiasts to earn passive income. Check out all ...

View more: A Guide on Staking TRX in NOW Wallet

Big Week for Voyager Digital Clients as Cash Withdrawals About to Begin

Source: Adobe/megaflopp Troubled crypto lender Voyager Digital said it plans to “restore access” to cash deposits in USD this week. Here’s what the process might look like. In a Friday blog post, Voyager said clients with cash in their accounts would be able to withdraw up to USD 100,000 ...

View more: Big Week for Voyager Digital Clients as Cash Withdrawals About to Begin

TRON (TRX) TVL Accelerates To Nearly $2 Billion Last Month

TRON (TRX) continues to gain traction despite the current erratic market movement. TRX has recently seen TVL growth by $6 billion in July which is by far due to a revival of investor interest specifically in DeFi. TRON has been the most-supported DeFi smart contracts seen in the past ...

View more: TRON (TRX) TVL Accelerates To Nearly $2 Billion Last Month

Solana Price Caught In Consolidation, Unable To Break Past The $40 Level

Solana price has been trading laterally as the altcoin has not been able to move past the $40 price mark. The altcoin has experienced a blow recently as thousands of wallets were drained of their assets owing to an exploit. The latest exploit had allowed hackers to drain the ...

View more: Solana Price Caught In Consolidation, Unable To Break Past The $40 Level

The B2Core Android Application Has Been Released

Disclaimer: The text below is a press release that is not part of Cryptonews.com editorial content. The initial version of the B2Core Android app has been made available for download, and it comes packed with a number of useful features. The application can already be downloaded from Google Play, and it enables ...

View more: The B2Core Android Application Has Been Released

Crypto Miner Marathon Increased Bitcoin Holdings Amid $191.6M Quarterly Losses

Bitcoin miner Marathon Digital increased its Bitcoin holdings by 707 despite a quarterly decline in production.

View more: Crypto Miner Marathon Increased Bitcoin Holdings Amid $191.6M Quarterly Losses

Feds Blacklist Tornado Cash, Ban Ethereum Mixing Tool in US

The U.S. Treasury Department put the Ethereum mixing service on the Specially Designated Nationals list today.

View more: Feds Blacklist Tornado Cash, Ban Ethereum Mixing Tool in US

Crypto Exchange Zipmex to Re-Open Bitcoin, Ethereum Withdrawals

STEED Runs Token Sale on P2PB2B

Decentraland Blooms In Green In Last 4 Days; Boosts Traders’ Appetite In MANA

VisionsDao Exits Stealth Mode and Presents a Modular Stack for GameFi That Enables Sustainable Economies

Tornado Cash Ban Blows Winds of Both Division and Unity Through Crypto Community

Everdome Secures USD 10 million Investment Commitment from GEM Digital Limited

Japanese fashion designer Issey Miyake dies at 84

Market Sentiment Holds Steady As Bitcoin Aims For $24,000

Metaverse NFT | 5 Best Projects Launching in 2022

Ethereum Crosses $1,700, But Could Return To Path Of Pain, Expert Says

Buying Crypto With Only A Tap Is Now Possible With The PrimeXBT App

How Ethereum Traders Are Preparing to Buy and Sell the Merge

OTHER TECH NEWS

Top Car News Car News