Japan’s government is preparing to ease regulations for taxes on crypto firms in the country to boost investment and growth in its fintech market.
To date, Japanese crypto companies pay 30 percent corporate tax rates on holdings, triggering an exodus of cryptocurrency enterprises from the island state over the past few years.
A tax committee meeting took place for Japan’s Liberal Democratic Party (LDP) on Thursday, leading to an approved proposal to eliminate paper gains tax requirements for crypto holders.
Japan’s Parliament is expected to receive the proposal next month and implement the new rules on 1 April, according to reports.
Akihisa Shiozaki, Web3 policy officer, told Bloomberg at the time: “This is a very big step forward […] It will become easier for various companies to do business that involves issuing tokens.”
Japanese Prime Minister, Fumio Kishida, said in October that numerous emerging technologies such as blockchain, non-fungible tokens (NFTs), and the Metaverse would facilitate the nation’s digital transformation. The nation would also digitise national identity cards.
The developments come after the recent bankruptcy of FTX, its research arm Alameda Research, and 130 affiliates following a massive bank run on the company’s native FTT token on 11 November.
In recent years, multiple nations, regions, and cities have pushed for similar initiatives with emerging technologies. Dubai, China, South Korea, the United States, United Kingdom, Saudi Arabia, and many others have launched plans to promote national digital transformations with Web3 technologies.
