Japan: Tax On Crypto Will Reduce To Revitalize The Market

The government of Japan hinted a lot of plans earlier this year, all showing its initiative to ease the process of taxing crypto investments – all in order to refrain from the impractical taxation frameworks that negatively affect the local market. In today’s crypto news, however, we have a new framework set up by Japan’s government, aiming at reducing the tax on Bitcoin and other cryptocurrency investments.

In fact, a committee of tax experts encouraged the authorities to simplify the complex process of disclosing taxable amounts that occur in investing in the crypto market. Before this, a local analyst said:

“If the rapid growth of the cryptocurrency sector in late 2017 is considered, 331 is a number that is simply too low to be true. A large portion of cryptocurrency investors probably did not declare their earnings to the government.”

Takeshi Fujimaki, who is a Japanese congressman and lawmaker, proposed four major changes to the taxation policies surrounding the digital asset market with the objective of revitalizing the market.

In order to reduce the burden on investors and in consideration of the characteristics of the cryptocurrency market, Fujimaki proposed the following changes:

1. Reduction of crypto tax gains from up to 55 percent to a fixed 20 percent rate on gains.
2. Carry forward losses across quarters and years, until the cryptocurrencies are cashed out
3. No taxes in trading crypto-to-crypto
4. No tax on small cryptocurrency payments

All of these proposed changes are about to affect the market in a positive way and allow investors to trade in a fairer environment.

“In order to increase the volume of transactions between virtual currencies and to revitalize the virtual currency market, trading between virtual currencies should be tax exempt,” Fujimaki concluded.