Crypto groups in Japan, which is one of the few countries that are stable in crypto money, want high tax rates to be reduced.
Japan declared cryptocurrencies as legal tender in 2017. After Coincheck, one of the country's largest cryptocurrency exchanges, lost more than $500 million in cryptocurrencies as a result of a cyberattack in 2019, the Japan Financial Services Board (FSA) introduced tougher regulations against cryptocurrencies.
While 2019 was seen as an important turning point for the Japanese crypto market, more laws and restrictions on the crypto industry have been introduced since then. Finally, after the collapse of the Terra ecosystem, fixed cryptocurrency issuers in the country were banned from operating in Japan without a license.
High tax rates are seen as a major obstacle for the Japanese crypto industry, along with harsh regulations. Japan Cryptoasset Business Association (JCBA) and Japan Virtual and Crypto Asset Exchange Association (JVCEA), two of Japan's largest crypto organizations that have voiced their complaints about this situation, are working on a proposal to submit to the Japan Financial Services Board (FSA). reported to be working.
This situation was also brought to the agenda by some politicians in the country. The reason for the demand for lowering taxes in the crypto field is the prevention of talented individuals and institutions operating in this field from escaping the country. So much so that some crypto companies in the country have moved their headquarters to Singapore, where conditions are better due to high taxes and harsh regulations.
According to Bloomberg news, tax regulations are being worked on to reduce the costs of holding and transferring cryptocurrencies in Japan. Accordingly, while 30 percent tax is levied on both realized and unrealized crypto money muscles in Japan, this rate is expected to be reduced by 55 percent. It is said that the proposal of the groups is to improve this ratio for corporate companies.