- The Japan Blockchain Association has requested the government to revise the tax regime for crypto assets.
- The request focused on three key changes that would remove taxes on unrealized crypto gains, among other reforms.
- The crypto advocacy group claimed that the high tax rates were hindering the country’s web3 adoption.
The Japan Blockchain Association (JBA) recently submitted a request to the Japanese government seeking a revision in the country’s tax regime for crypto assets. The JBA is a local crypto advocacy group dedicated to growing the adoption of crypto through lobbying and policymaking. Its members consist of people from blockchain firms in Japan, tech startups, and even members from the local government.
Crypto journalist Colin Wu took to Twitter earlier today to report JBA’s latest initiative:
According to Coinpost, the Japan Blockchain Association has submitted a request to the government to revise the tax system for crypto assets, Including changing the taxation method of personal transactions to a flat tax rate of 20% and canceling the profit income tax for each…
— Wu Blockchain (@WuBlockchain) July 29, 2023
Under the leadership of Yuzo Kano, the Japan Blockchain Association called for a review of the country’s tax regime for crypto assets and sought revisions in the interest of increasing web3 adoption in the country. The crypto advocacy groups focused on three major requests from the government.
The first request was the elimination of year-end taxation on unrealized gains. The JBA argued that end of term unrealized gains tax forced several companies to hold crypto tokens held solely for tax purposes. The group added that the unrealized profit tax on tokens issued by third parties deterred newcomers from entering the crypto space.
The second recommendation by the JBA was ditching taxation of individual crypto transactions and introduction of a uniform tax rate of 20%. A previous survey carried out by the crypto advocacy group found that over 43% of crypto investors would double their investment amount if the government switched to a separate self-assessment taxation policy.
The third recommendation pitched by the Japan Blockchain Association, was the elimination of income tax on profits for every crypto transaction. The JBA suggested that implementing such progressive tax regimes would place Japan among the top destinations for crypto and web3 firms to set up shop and benefit the Japanese economy.
