ICOBox Head of International PR Dima Zaitsev shares his thoughts on proposed changes to Japanese crypto tax law
A Japanese lawmaker, Takeshi Fujimaki, has proposed sweeping changes to Japanese tax law in an effort to promote the growth of cryptocurrencies in the nation. The four-step program outlines crypto-specific tax reductions, deductions and exemptions.
Fujimaki is seeking to adjusts tax rates to reflect the risks associated with crypto investments, reducing taxes on cryptocurrency gains from 55 percent to 20 percent. More favorable tax rates should encourage investments in crypto and blockchain technologies.
Another aspect of the plan would implement a “loss carryforward deduction,” allowing investors to write off major losses in crypto, even if they made a profit the next year.
The initiative is also looking to encourage the use of cryptocurrency for everyday transactions, possibly exempting small settlements ($30 or less) from taxes altogether.
Dima Zaitsev, the ICOBox Head of International PR, applauds the proposed changes, “Japan is exploring creative solutions that could both excite investors and encourage everyday crypto adoption for a cashless future. Many legislative efforts have focused on one aspect or the other. Seeing a government tackle both fronts at the same time is refreshing.”
Japan has, so far, had a complicated relationship with crypto. The government has stressed compliance with finance laws has been heavy handed with punishment for any institutions attempting to cut corners. Crypto-specific tax legislation could be a sign of a changing attitude towards cryptocurrencies by the government.