Japanese crypto companies want changes in crypto laws
A group of crypto companies submitted requests to the Japanese government to bring some necessary changes in the laws so that companies can easily handle their business operations & remain away from complicated rules.
Japan is a tech-adaptive country. In this country, crypto trading & investment is fully legal under the Payment Services Act but the use of cryptocurrencies in the form of payment is strictly prohibited.
On 28 July 2023, The Japan Blockchain Association (JBA), a group of crypto companies submitted a request to the Japanese government to bring some small changes in the crypto laws.
The three main points of the submitted request are:
- Elimination of year-end unrealized earnings taxation on cryptocurrencies issued by third parties.
- Converting the method of taxation of personal transactions to a flat tax rate of 20%.
- Removal of income tax on profits whenever crypto assets change hands.
According to the submitted request, if the government will bring changes against the main mentioned issues then it will be better for the crypto investors as well as crypto companies to easily contribute to the Web3 economy.
Furthermore, the JBA’s noted that new changes will increase tax revenue for the Japanese government and also the country will show its strong position in the world in the race of Web3 adoption.
According to JBA, the current crypto tax rules are not fair and also complicated for the crypto sector participants.
Japan, Crypto, & rules
No doubt that some crypto focussed rules are not simple in Japan but it is also a truth that crypto companies are free to operate their crypto business in this country under the precise rules & regulations.
In July of this year, the Stablecoin firm Circle confirmed that it will launch a stablecoin dedicated to the Japanese crypto market, as the country’l brought some changes in its old laws.
It is worth it to note that the Japanese government brought some new changes in its crypto rules to kick out any vulnerability associated with any existing rules. Because of the new rules, some crypto companies failed to comply with the new rules & further decided to leave the Japanese jurisdiction.
Read also: Human Rights Foundation running Bitcoin bug bounty program
