Japan just established a whole new level of clarity to its crypto tax agenda. Up to this point, all unrealized gains from crypto assets were subjected to the country’s present 30 percent corporate tax rate, though now, it appears this is coming to an end.
Japan is Putting an End to Some Crypto Taxation
The news came from Japan’s National Tax Agency (NTA). The agency explained in a statement that crypto assets will be excluded from any company’s asset valuation based on market value if certain conditions are met. For example, a company is required to hold crypto assets for certain periods after they’re obtained if tax exemptions are to occur. Also, it’s been stated that all crypto transfers are subject to specific restrictions.
Soto Watanabe – CEO of web3 development firm Stake Technologies Pte. – believes the new taxation laws will open all kinds of doors for innovation in Japan, and he thinks this will do wonders in preventing Japanese crypto companies from leaving. At the same time, he also says the rules can be extended somewhat to ensure crypto firms in other regions also benefit. He stated:
For the time being, people who want to do something… can now do it without leaving the country. I would like to continue constructive discussions with politicians and authorities. Next, I would like to do something about the end-of-term taxation of holding tokens issued by other companies as a corporation, as it is a hindrance to the domestic expansion of projects and domestic projects.
While crypto taxation hasn’t become null and void in Japan, the present rules are considered far less strict and a solid move forward for the Asian country, which up to this stage, was considered one of the harshest with its digital currency laws given it was home to both the Mt. Gox and Coincheck debacles. Both are considered among the biggest crypto exchange hacks in history.
The first, which occurred in 2014, saw more than $400 million in BTC disappear overnight, while the second (which occurred four years later) saw more than half a billion in assorted crypto funds vanish. The situation surrounding Japan and crypto taxation begs the question, “If a country that’s home to not just one, but two of the biggest crypto mishaps can take it easy on the industry, why can’t the U.S.?”
America is currently utilizing an attitude of regulation through enforcement when it comes to crypto. Agencies like the SEC are coming after the industry with everything it has, and lawsuits are being initiated against some of the biggest crypto firms out there including Coinbase.
The U.S. is in a Bad Place
Noriyuki Hirosue – CEO of crypto exchange Bit Bank – said:
The U.S. regulators are increasingly tightening controls, but that doesn’t mean the same things will happen in Japan.
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- Source: https://www.livebitcoinnews.com/new-japan-laws-will-put-limits-on-crypto-taxation/
