Japanese crypto-asset associations are joining forces to request lower crypto taxes.
The Japan Crypto-Asset Business Association (JCBA) and the Japan Crypto-Asset Exchange Association (JVCEA) have issued a tax request reform to lower crypto earning taxes for individual investors.
According to the reform request, the associations are asking to consider a number of issues regarding crypto functioning in Japan. These issues among other things include tax filing, comparison of overseas taxation systems, the lack of consistency, and overall “importance of crypto assets in Japan’s Web3 strategy”.
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However, JCBA and JVCEA highlight that the key request is to create a separate 20% taxation for individual investors and crypto derivative market. The request also proposes that losses would be carried forward “three years from the following year”.
The Fiscal 2023 Tax Reform would be a significant help for Japanese crypto investors as they are currently paying taxes worth around 55% of their crypto investments.
Countries around the world are also trying to find a correct way to tax these investments. Just recently, US Senators Patrick Toomey and Krysten Sinema initiated a Virtual Currency Tax Fairness Act review, offering to exclude taxation for transactions worth less than $200. Whereas, South Korea has postponed a similar initiative regarding 20% taxation to 2025.
In other news, the Japanese crypto exchange Gaia Co Ltd is planning to set up a number of ATMs across Tokyo and Osaka.