Japan’s parliament has been debating new tax rules for cryptocurrencies since last August, but the tax authority has only now approved eliminating tax on unrealized profits. According to representatives of the ruling Liberal Democratic Party of Japan, this “will greatly facilitate the work of companies whose business is related to the issue of tokens.
Recall that stabelcoins in Japan were recognized as digital money last year, and their issue was allowed only by licensed banks. The law came into force on June 1. Now Japan’s largest bank, MUFG, is in talks with foreign steblecoin companies to launch tokens on its blockchain platform, Progmat.
The Japanese government excluded unrealized profits of cryptocurrency holders from the tax base six months ago. However, this relaxation did not apply to companies issuing tokens.