The Japan Blockchain Association, concerned with crypto, advocated for reforms in the current tax regime for the sector in Japan, filing an official request.
A lobby group for crypto, the Japan Blockchain Association, has recently appealed for crypto tax cuts. The industry association has requested the government with an official application. It has urged the Japanese government to reform the national tax regime for digital assets.
The association has included three suggestions for the authorities in their application. It claimed high crypto taxes were acting as a barrier for crypto firms. It stated crypto investors were hesitating to invest further due to major tax barriers.
Firstly, the industry association has requested the authorities for the removal of taxes from unrealized gains of crypto assets. The association was referring to corporations holding crypto assets issued by third parties. Earlier this year, the National Tax Agency of Japan abolished taxes on paper gains for crypto token issuers.
The second request filed by the association deals with changing the tax structure of gains from crypto trading. It suggested introducing a sell-assessment method for such gains, with a uniform 20% tax rate. It also appealed for carry forward of losses generated from the value depreciation of the assets.
“There is a high possibility that the exchange of crypto-assets will become the mainstream of the economic zone, and due to the wide variety of transactions that occur and the types of crypto-assets that are exchanged, tax calculation will be extremely difficult,” said the crypto group. It was referring to its third suggestion, which was to remove income taxes on each crypto transaction.
The industry has regarded Japan as a crypto-friendly nation in recent months. Authorities could consider the crypto tax requests as well.