Leading Japanese crypto lobby groups plan to submit a proposal to Japan’s financial regulatory body to address its high crypto taxes, which experts warn make Japan less competitive as a crypto hub.
The proposal will be submitted to Japan’s Financial Services Agency this week, asking them to put an end to taxing unrealized gains on crypto holdings if the firm owns them for purposes other than short-term trades.
The proposal also asks for the financial regulator to lower income tax rates on crypto earnings for individual investors to 20%, which is far less than the current rates that see some investors being taxed as high as 55%.
Head of Tax Danny Talwar from crypto tax platform Koinly stated that the current regulatory environment makes it difficult for businesses and individual investors to hold digital assets in Japan compared to more crypto-friendly nations
As for regulation, Talwar acknowledged it should not stifle innovation in this fast-growing industry” But before doing so, it is important that lawmakers have a clear understanding of how the taxation of digital-assets fits within the current tax regimes and regulatory frameworks, he said.
The proposal is reportedly being prepared by the The Japan Cryptoasset Business Association (JCBA) and the Japan Virtual & Crypto Assets Exchange Association (JVCAEA), whose members are made up of crypto firms including Bitcoin Association and forex broker WikiFX.
