Japan’s crypto lobby groups are insisting on lowering the current tax rates as it might be hindering the industry growth. Lowering the tax rates would eventually help to retain talent in the crypto industry.
Specifically two of the top crypto lobbying groups, the Japan Cryptoasset Business Association and the Japan Virtual and Crypto assets Exchange Association have been trying to form a proposal to submit to Japan’s Financial Services Agency some time this week. The proposal will mainly comprise of these lobby groups requesting FSA to reduce the cost for businesses to issue and hold cryptocurrency tokens.
Once and in case of an approval, local companies will be exempted from paying taxes on paper gains on cryptocurrency holdings if these organisations own the asset for short-term trade purposes.
These earnings at the moment have been subjected under the 30% annual taxation bracket rate. This taxation policy is rather stringent and has caused significant exodus of talent from the country. Many local companies have migrated to places that are welcoming towards the digital asset industry such as Singapore.
Change In Tax Rates To Reduce Crypto Talent Turnover
Japan has lost local businesses to other nations, those that have been more welcoming of the industry. Due to unfavourable trade conditions, holding onto digital coins after the creation process becomes unstainable in terms of the cost to businesses.
