The Financial Service Agency (FSA), Japan’s main regulator, is in favor of a revision of the taxation on cryptos. A reform that would affect both companies in the sector and individual investors.
Japan in the process of reforming a tax code penalizing the crypto sector
Faced with a punitive tax, which imposes a 30% tax on crypto assets including unrealized gains, many companies in the sector are relocating or seeking to relocate. Also to curb this phenomenon, at a time when the government of Fumio Kishida recognizes that the Web3 could stimulate the economic growth of the archipelago, the FSA is preparing to make proposals to reform the tax laws in force.
They would also concern individuals, the FSA considering, according to the media CoinPost, to allow them to access the tax relief program of the Nippon Individual Savings Account (NISA), including an exemption of $ 2900 of assets from capital gains tax (for comparison, in France the ceiling is 300 € …).
The FSA’s proposals must be examined by a parliamentary tax committee to be validated by the end of the year. The context helping, acceptance is likely.
A digital yen sent to oblivion
Japan seems to be looking to take a new turn to start its economic recovery. Cryptocurrencies could be given more space in the creation of new web-related services3. On the other hand, the digital yen, which was once seen as the solution to boost Japan’s competitiveness, especially by facilitating cross-border payments, is no longer on the agenda. It is the first economic power to officially admit to such a reversal and to abandon the tests of its MNBC, which was far from being accepted by the Japanese. From now on, the leaders want to concentrate only on the experiments around the digital payment.
A priority that the US news has just sharpened with the Federal Reserve announcing its intention to launch its FedNow real-time payment system in 2023. This could postpone or even erase the digital dollar project. A project that has never generated much enthusiasm anyway. Only the European Union believes that the digital euro is a project of the future.