Under the leadership of Yuzo Kano, the Representative Director of bitFlyer Co., Ltd., the Japan Blockchain Association has called on the government to amend the tax legislation regarding cryptocurrencies and digital assets. Yuzo Kano serves as a representative director for the organization, leading their efforts to advocate for tax reform in this domain.
Web3 technologies, which use blockchain and cryptocurrencies for cutting-edge internet solutions, are now being hampered by the existing tax regulations.
To improve Japan’s standing in the developing web3 ecosystem and create a climate where its residents can freely acquire and use crypto assets, the Japan Blockchain Association (JBA) has suggested three reforms. Their suggestions state that doing rid of the year-end unrealized gains tax would encourage businesses to enter the web3 market. According to the association’s request, the present tax structure, which requires selling tokens to pay taxes, might potentially cause token prices to drop, which would impede the expansion of token-enabled businesses.
Around 6.8 million cryptocurrency accounts are located in Japan, which makes it a big player in the sector. The Japan Blockchain Association (JBA) is confident that adopting their suggested tax adjustments will benefit both current investors and draw more people into the cryptocurrency sector.
The potential of web3 to change the current internet infrastructure and transform society was acknowledged by Japanese Prime Minister Fumio Kishida earlier this week, highlighting the government’s intention to create an environment that is supportive of web3 projects. In parallel with the United States’ regulatory scrutiny becoming more intense, cryptocurrency companies, including Binance Exchange, have started researching regulatory frameworks in other nations. Binance has expressed interest in entering the Japanese market as a result of the legal issues it is currently dealing with in the U.S. and other countries.
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