The ruling political party in Japan agreed to relax corporate tax regulations for cryptocurrencies, showing support for a sector that is still reeling from Sam Bankman-Fried’s crypto empire’s collapse.
According to a member of the Liberal Democratic Party, the tax committee on Thursday approved a proposal to exempt businesses from paying taxes on paper gains on cryptocurrency they hold after issuing.
“This is a very big step forward.”“It will become easier for various companies to do business that involves issuing tokens.”said Akihisa Shiozaki, an LDP lawmaker at a briefing
Japan moves positively amidst FTX’s fall
The action shows that, despite the industry being rocked by FTX’s collapse, policymakers in Japan are still relying on crypto technologies to spur growth. Japan currently levies a corporate tax of about 30% on cryptocurrency profits, including unrealized gains.
Based on the decisions made by the party, Prime Minister Fumio Kishida’s administration will complete its annual tax policy guidelines by year’s end.
Typically, the government presents legislation to the legislature in January to update the tax laws for a new fiscal year beginning on April 1.
Japan eased crypto listing process
Japan aims to further relax cryptocurrency regulations by making it easier to list virtual coins, which might make the nation more appealing to Binance and other foreign digital-asset exchanges.
Unless the tokens are completely new to the Japanese market, the organization that regulates cryptocurrency exchanges intends to allow them to sell coins without subjecting them to its time-consuming screening procedure.
The relaxed regulations may become effective as early as December, making it simpler for startups to compete with well-established companies by facilitating the listing of tokens and lowering the entry bar. The member companies have just received the documentation outlining the changes.
In remarks he described as personal opinions, vice chairman Genki Oda suggested that the Japan Virtual and Crypto Assets Exchange Association might also do away with pre-screenings for coins that are new to the nation as well as for tokens issued via initial coin or exchange offers.
The country is treating the revival of its cryptocurrency sector more seriously, breaking with the regulatory tightening of recent years.