To prevent emerging startups from migrating out of the country, Japan is planning to soon launch new crypto tax rules. Company crypto asset taxes will be reviewed by the Financial Services Agency and the Ministry of Economy, Trade, and Industry.
The aim of these new rules is to make it easier for new companies to get started in the space. In general, the nation intends to adjust crypto tax regulations by the year 2023 in an effort to stop promising companies from leaving the country.
In June, Japanese Prime Minister Fushio Kishida expressed the opinion that the process of listing cryptocurrencies in Japan should be simplified significantly. As a result, the Japan Virtual and Crypto Assets Exchange Association (JVCEA) made the decision to modify its listing requirements. It was anticipated that before the end of this year, a conclusion would be reached on the matter.
There is hope that by 2023, the atmosphere in the country will have improved significantly for the crypto ecosystem thanks to new corporate tax laws. In the new crypto tax rules that will go into effect in 2023, the government will only tax profits from sales. The goal is to stop businesses from leaving the country while still allowing startups to thrive.
The crypto community in Japan has been calling for a tax reduction in July 2022 to prevent the brain drain that Mikitani highlighted. They fear that the 30% corporation tax on cryptocurrencies that Japan has implemented at the moment would cause a significant loss of talent in the nation. Those in favor of these changes have also argued that doing business in Japan is difficult.
Japanese crypto groups have also submitted a tax reform petition for the next fiscal year 2023. This proposal proposes a 20% tax rate. Three problems are singled out: inconsistency within the system, the requirement to have a web presence, and the simplification of tax filings.
The Ministry of Education, Culture, Sports, Science, and Technology in Japan (METI) has also launched a web3 policy offer to properly manage and direct this fresh initiative.
Sumitomo Mitsui Banking Corporation, one of the largest banks in the nation, has also revealed plans to begin offering NFTs and web3 services. As of this year’s end, trust banks in Japan will also be able to handle cryptocurrency assets.
