Japanese Crypto Firms Advocate for Tax Reform
Top Japanese crypto firms, including major exchanges, continue to push for reforms in Tokyo’s stringent tax laws.
JBA Focuses on New Tax Measures
In a Japan Blockchain Association (JBA) post dated June 17, Yuzo Kano, CEO of bitFlyer Holdings, announced the body’s intention to introduce new tax measures over the next year.
Japanese Crypto Firms Want Tax Reform for Individual Traders
Many countries impose a flat-rate capital gains tax on annual crypto earnings. However, Japanese law requires traders to declare their coin-related profits as “other income.” This can result in tax rates as high as 55% for high earners. By comparison, PwC data indicates the average global capital gains tax rate is around 20%.
The JBA represents the nation’s largest and most prominent crypto exchanges and blockchain firms. At a meeting on June 17, Kano was reappointed as the JBA’s chair. Other notable directors include Mizuho Financial Group’s Tatsuto Fujii and the CEOs of double jump.tokyo and Startale Labs.
JBA Targets More Tax Progress
Kano stated that the JBA will advocate for changing the taxation method for individual cryptocurrency transactions. He proposed setting a flat tax rate of 20% and eliminating income tax on profits from crypto-to-crypto trades. Many other countries do not tax such trades.
Additionally, the JBA wants Tokyo to allow individual crypto traders to carry forward their losses on tax declarations. They also seek to reform the leverage ratios cap for crypto trading.
The JBA was founded in 2014 and will celebrate its 10th anniversary this September. Kano noted that the JBA’s efforts have already led to the reform of crypto tax rules for corporations. Last year, Tokyo removed a tax on unrealized “paper” crypto gains for businesses holding tokens.
Kano emphasized the JBA’s goal to create new value and ensure the sustainable development of the industry. The adoption of web3 technology is key to this vision.
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