Japanese Crypto Firms to Continue Pushing for Tax Reform
Top Japanese crypto firms, including major crypto exchanges, say they will keep pushing Tokyo to reform the nation’s strict tax laws.
In an official Japan Blockchain Association (JBA) post published June 17, Yuzo Kano, the CEO of the long-time market leader bitFlyer Holdings, said the body would “focus on the introduction of” new tax measures in the next 12 months.
Japanese Crypto Firms Want Tax Reform for Individual Traders
Many other nations require crypto traders to pay a flat-rate capital gains tax levy on their annual earnings.
However, Japanese law obliges traders to file their coin-related profits as “other income” on tax declarations.
That means high-earning individuals may have to pay up to 55% tax on their crypto earnings.
The average global headline capital gains tax rate, per PwC data, is around 20%.
The JBA comprises most of the nation’s biggest and most well-known crypto exchanges and blockchain-related firms.
At a meet held on June 17, Kano was reappointed as the JBA’s chair. Other notable names on the board of directors include Mizuho Financial Group’s Tatsuto Fujii and the CEOs of the crypto projects double jump.tokyo and Startale Labs.
JBA Targets More Tax Progress
Kato said that the JBA will petition Tokyo to “change the taxation method for individual cryptocurrency transactions to separate self-reporting taxation.”
He also proposed “setting the tax rate at a flat 20%.” The bitFlyer CEO said his goal was also to “do away with income tax on profits made when making crypto-to-crypto trades.”
In many other countries, only crypto-to-fiat trades are considered taxable events.
The JBA also wants Tokyo to let individual crypto traders carry forward their losses on tax declarations.
Additionally, the body says it wants the government to reform its restrictive leverage ratios cap for crypto trading.
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— Reuters (@Reuters) May 31, 2024
The JBA was established in 2014, and celebrates its 10th anniversary in September this year.
The bitFlyer CEO noted that the JBA’s efforts had already helped reform crypto tax rules for corporations.
Last year, Tokyo effectively agreed to scrap a tax on unrealized “paper” crypto gains for businesses that hold tokens.
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Kato said:
“This year, in order to ensure the healthy and sustainable development of the industry, we will once again review the business environment of the entire industry […] The JBA aims to create new value and achieve sustainable development through the adoption of web3.”
