Japan's “unfair” taxation is stifling the crypto industry. Many companies are forced to leave the country

Briefly:

  • The Japanese government has approved a tax plan for next year
  • Onerous fees for crypto companies upheld
  • Not only large projects should pay high taxes here, but also startups that have barely entered the market
  • At the same time, the rate of income tax on cryptocurrency transactions can reach 100%

In early December, Japan’s ruling party approved a tax plan for the next year. Among other things, it has a section on cryptocurrencies. Many traders and investors counted on benefits or at least easing of tax pressure, but this did not happen.

Fee for listing tokens on crypto exchanges remains in effect. The platform is obliged to pay even if the asset is not traded, but it is on the list of available ones, and the market capitalization of the company has grown.

The issuing company is also subject to taxation upon entering any market. And if she just distributes “coins”, then both the platform and the user will have to pay. In some cases, this fee reaches 50%.

The tax rate on income from operations with cryptocurrencies varies depending on several factors, including the volume of assets. Most large companies are required to pay to the treasury before 108% of the profit received.

Such harsh conditions forced some firms to leave the national market. According to the founder of the consulting company Gracone, Mai Fujimoto, at least eight major “players” have already left Japan.

Some of them chose Singapore. But here, too, crypto companies are forced to obey fairly strict rules.

Sota Watanabe, founder of Astar Network’s multi-chained DeFi Application Center, believes the industry lacks effective cooperation between legislators and business representatives.

He intends to write an open letter to the Japanese government describing the problem. The businessman believes that the country may lose the chance to compete with the United States in this field of opportunities.

“We have lost in the internet, mobile and automotive sectors. Web 3.0, blockchain and cryptocurrencies will be a new revolutionary stage in the development of the global economy. Japan could lose again if the policy does not change, ”said Watanabe.

By comparison, the income tax rate for stock portfolio holders is 21% … For crypto investors and crypto exchanges – up to 103%.

BITPoint President Genki Oda believes that the market could have been reinvested before 220 billion dollars if these two taxes were made equal.

See also: Brazil is thinking about canceling taxes for “green” crypto-miners.

Dima is a managing editor and news writer. 5 years in content management. He makes sure that only high-quality information, truthful news and interesting articles get to the site. You can contact him through @IncryptedNewsBot.

Related Articles

Check Also
Close
Back to top button