Representatives of the public organization stresses: it is necessary to revise taxation to spur the development of crypto projects. The organization is asking for a flat tax rate on personal transactions in digital assets of up to 20% and the elimination of taxes on profits derived from cryptocurrency transactions.
As of April 2023, there were about 6.8 million cryptocurrency accounts in Japan, according to the Cryptocurrency Exchange Association of Japan. And, JBA officials emphasize, if the tax burden is reduced, the number of accounts will increase, followed by investment in digital assets.
JBA is also asking to eliminate the tax on unrealized gains from cryptocurrency assets, which is assessed at the end of each year. This will lower the barrier to entry into the Web3 industry for companies – legal entities won’t have to sell tokens to pay taxes on unrealized profits.
Representatives of the International Monetary Fund have said that taxation of the cryptocurrency industry in various countries is not optimal, and a major overhaul of tax systems is needed.