Japan’s Finance Minister Wants to Change Crypto Taxation, Doubts Public Acceptance
Japan’s Minister of Finance and Deputy Prime Minister suggested today that the crypto tax rate be changed to a flat 20%, similar to stocks, Forex trading.
During today’s Upper House Budget Committee meeting, Senator Fujimaki asked Japan’s Deputy Prime Minister Taro Aso whether crypto transactions should be taxed via a “separate settlement taxation,” rather than their present classification as “miscellaneous income.” Aso said the prospect was “doubtful” and expressed concern over the public’s reaction due to “tax fairness.”
The current tax rate for crypto transactions has a maximum of 55 percent, and changing its category would bring it to a 20 percent flat tax similar to stocks or forex trades.
During the same meeting, Aso noted that the position of cryptocurrency in the international financial sector is uncertain. He also spoke of the importance of the development of blockchain technology, but added that supporting the technology can be controversial, given that it underlies cryptocurrencies.
Japan’s Financial Services Agency (FSA) has been active last week, issuing business improvement notices to crypto exchanges as part of their ongoing regulatory inspections following the $530 million hack of Japanese crypto exchange Coincheck in January.
Today, the two vice-presidents of Japan’s self-regulatory cryptocurrency exchange body resigned after both of their respective exchanges received FSA business improvement notices last week.