Japan’s Cryptocurrency Reform Bill receives cabinet approval, aligning crypto and stocks tax rates.
- Bill positions crypto as a new asset class in Japan.
- Tax on crypto reduced from 55% to 20%.
- Potential boost for domestic crypto investments.
Japan’s Cryptocurrency Reform Bill, which was recently approved by the Cabinet, is set for submission to the Diet. The bill significantly alters how crypto investments are taxed.
The bill could enhance Japan’s crypto adoption by aligning crypto tax rates with traditional stocks, inviting more domestic investments and fostering market growth.
Crypto Tax Reduced to 20% in Japan’s Major Overhaul
Japan’s Cabinet has approved a proposal distinguishing crypto assets from securities, aiming to boost market development and offer investors protection. The new reform allows for differentiated taxation, aligning crypto taxes with other financial products.
Akihisa Shiozaki, leading the LDP’s Web3 Working Group, is influential in the proposal’s submission. The proposal includes a significant tax cut, reducing rates from 55% to 20%.
Tax Cuts Set to Spur Japan’s Crypto Investment
The bill’s tax rate adjustment could encourage more cryptocurrency investments, as high taxes have been a barrier in Japan. Financial markets may see increased activities in the crypto sector.
Aligning tax rates with stocks is expected to enhance Japan’s global competitive position. Socially, the proposal signals a broadened acceptance and encouragement of digital asset investments.
Japan’s Crypto-Positive Legislative History Boosts Bill Prospects
Japan’s legislative history shows consistent support for crypto-related changes post-Cabinet approval. This suggests a high likelihood of parliamentary consent, continuing Japan’s progressive stance on cryptocurrency.
Experts like Scott Melker and Jeff Park suggest these amendments could foster a strategic digital asset reserve for Japan, potentially increasing its influence in the global crypto market.
“The proposal positions crypto assets as a new asset class distinct from securities under the Financial Instruments and Exchange Act, aiming to promote market development, protect investors, and implement separate taxation.” – Akihisa Shiozaki
