- The company attributes this to regulatory pressure
- The authorities only want to work with local providers
The Coinpost reports that cryptocurrency exchange OKX will suspend operations with Japanese users. In an explanation, the company states that “due to local laws, customers cannot use OKX Exchange products.”. This is likely due to pressure from the local regulator, the Financial Services Agency of Japan.
OKX became the second major company to have to leave the region. Previously, Binance Global warned that from November 30, 2023 will stop serving customers in Japan. However, Binance will launch a local platform, Sakura, this summer.
Japan’s policy in general is not aimed against the crypto business. But the authorities want full control of the sector, and are willing to work only with local companies.
Yesterday, a new law came into effect in Japan. It exempts cryptocurrency issuers from paying a 30% corporate tax on unrealized profits from tokens.
The rate change comes amid government initiatives to promote its blockchain and crypto sector. Prime Minister Fumio Kishida advocates increased investment in digital technology and blockchain implementation in Japan. He believes it will revive the economy and build a “new capitalism.”
For Japanese residents, there is a 55% tax on income if it exceeds 200,000 Japanese yen ($1400). This is quite a high figure – for comparison, in Ukraine they want to introduce a tax of 20%.