Japan Financial Regulator Requested to Reduce Crypto Tax by Economic Alliance

Japan

Japan’s Financial Services Agency (FSA) has been requested by the Association of New Economy (JANE) to reduce the current tax rate for crypto-related income, media reported on 14 February 2019.

In a proposal request, it has been suggested to the FSA to impose progressive taxation on crypto instead of general taxation, noted media report. The initiative was led by Rakuten’s CEO, Hiroshi Mikitani.

According to the said proposal, a progressive tax is currently applied to forex and stock markets in Japan. The tax rate, under progressive taxation scheme, is 20 percent. However, the crypto sector is taxed according to the general taxation system, which is 55 percent. The aim of this request is to bring down the tax rate from 50% to 20% on crypto gains. Moreover, the association has proposed that no tax should be imposed on crypto-to-crypto transactions by FSA.

In addition, JANE appealed to the Japanese regulator to avoid hindering the growth of the crypto sector. It maintained that restrictive regulations on digital assets will likely harm innovation. Furthermore, the association demanded a clarification from FSA regarding the settlement process of initial coin offering, derivative trading and its regulatory scope.

Recently, Rakuten (Japanese version of Amazon) declared that it will revise its corporate structure. The company aims to utilize blockchain technology for setting up a new payments subsidiary system. Moreover, its loyalty branch, Spotlight Inc., will be rebranded to a new firm named as Rakuten Payment. A crypto exchange will also be operated by Rakuten Payment.

On the other hand, FSA recently (12 January) announced that within the next six months, the review process of crypto-related businesses licenses will either be rejected or approved.

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