Japanese Exchanges Demand Tax Reforms From Regulators

Japan is one of the most promising countries when it comes to cryptocurrency regulation, the latest cryptocurrency news show. The self-governing Japan Virtual Currency Exchange Association (JVCEA) has recently asked the country’s top financial regulator to change the way cryptocurrency-related earnings are taxed. With this, the Japanese exchanges are demanding new tax reforms from the country’s regulators, stating that the financial laws do not see cryptocurrencies in the right way.
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The JVCEA is a body that represents all of Japan’s licensed cryptocurrency exchanges as well as a range of blockchain, banking and legal industry stakeholders. The body said that it has filed an official document with the regulatory Financial Services Agency (FSA) noting that even though it feels much progress has been made with regulations in the industry so far, tax guidelines are still inadequate.

The JVCEA mentioned that Japanese exchanges need regulation – and that the law now recognizes cryptocurrencies as bone fide financial assets. The JVCEA proposed the following:

• Citizens who must pay tax on their cryptocurrency holdings should be granted a three-year grace period to obtain necessary documentation/registration information (before fines become applicable).
• Cryptocurrency derivative transactions should be taxed separately, and the transfer of losses should be allowed (as one of the main things Japanese exchanges need)
• Small-scale cryptocurrency transactions should not be subject to taxation.
• Cryptocurrency issuance from initial coin offerings (ICOs) should be recognized as a capital transaction rather than taxable income.
• Special tax laws and tax breaks should be introduced for certain investment deals involving cryptocurrency projects.

The demands by the Japanese exchanges are all over the altcoin news and have taken on a new significance after the pro-crypto tax reform lobbyists saw their political ally losing his seat in the parliament last week.

As many best cryptocurrency news sites reported a while ago, the JVCEA is hoping that the recent resignation of its former president (the SBI Group CEO Yoshitaka Kitao) will not diminish its standing as it aims to shape policy on what many Japanese crypto enthusiasts feel that is now a key issue.

Meanwhile, the top tax authority in the US, the Internal Revenue Service (IRS), will soon update its cryptocurrency guidelines “in the coming weeks” as reported in July.