Global: Regulators In Japan Propose Relaxation Of Crypto Tax Rules

Authorities in Japan have proposed lesser restrictions on corporate tax rules for cryptocurrency assets and individual stock investors.

This proposal, by the Financial Services Agency of Japan, seeks to enhance the country’s economic growth through cryptocurrency.

As reported by ‘Bloomberg’, this proposal is also in line with the country’s Prime Minister’s revitalization agenda tagged “New Capitalism”.

This strategy proposes increased wealth creation through avenues that include Web3 technologies.

“The financial regulator said companies should receive exemptions from paying taxes for paper gains on crypto that they hold after issuing them, while also proposing more support for a program that offers tax breaks to individual investors.

Japan passed legislation in June that effectively defines stablecoins as digital currencies, making it one of the first major world economies to set up a legal framework for stablecoins.

The law says stablecoins need to be linked to a legal tender and guarantee that holders can redeem them at face value. It also says that only licensed banks, trust companies, and registered money transfer agencies can issue stablecoins.

The Japan Cryptoasset Business Association and the Japan Virtual and Cryptoassets Exchange Association issued a proposal to make it cheaper for companies to issue and hold cryptocurrency tokens.” Bloomberg’s report said.