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The Japanese cryptocurrency industry is stepping up its lobbying efforts against stringent taxes preventing the growth of digital assets in the country. Leading this campaign is the Japan Blockchain Association (JBA) headed by Yuzo Kano, the CEO of bitFlyer Holdings which is one of the largest players in the market. In a statement released by the JBA on June 17, Kano reaffirmed their commitment to the push for change in tax laws within the next year. As for the current taxation laws in Japan, the profits generated from the trading of cryptocurrencies are categorized under ‘other income’, which means that the higher income earners have to pay a tax of 55% on their profits. This is quite alarming, especially when compared with the global average capital gains tax rate of approximately 20%, as estimated by PwC.  According to the JBA, which consists of the majority of well-known Japanese crypto exchanges and other companies that use Blockchain technology, these rates are too high and do not meet international standards. In a session held on June 17, in which Kano was reelected as the JBA’s chair, the subject of how to apply pressure for major changes to the tax system was also addressed. Other attendees of the meeting were Tatsuto Fujii of Mizuho Financial Group, and CEOs of well-known crypto projects, including double jump.tokyo, and Startale Labs. The JBA has made a very bold move to the government by proposing what can be considered one of the most revolutionary self-reporting tax systems for individuals dealing with cryptocurrencies. This proposal also suggests a fixed tax percentage of 20%.  Besides this, Kano also underlined the importance of abolishing income taxes on revenue arising from trading cryptocurrencies for other cryptocurrencies. This kind of action would align Japan with other countries where only the conversion of…

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Filed under: News - @ June 20, 2024 1:30 pm