Lawmakers in Japan are examining invoices that could have a significant impact on the cryptocurrency industry in Japan. Japanese parliamentarian Tekeshi Fujimaki, who is a representative of the political party Nippon Ishin, has recommended four amendments to help promote the wider spread of virtual currency in society. The four proposals are as follows:
1. A 20% tax rate for cryptocurrency gains rather than the current maximum of 55%. This would lead to cryptocurrency to invest more in line with the way in which shares and mutual funds are treated and taxed.
2. Allow to carry out losses on cryptocurrency trading to make the system fairer. This is actually a really powerful rule if approved and will make cryptocurrencies more similar to traditional investments.
3. Remove the tax on trading between cryptocurrencies: currently, for example, if you trade bitcoins for ethereum and earnings, you have to pay taxes. Your proposal will remove the meaning of the tax you will pay only when you collect the Fiat. This would be a huge boom for cryptocurrency investors in Japan and for the entire trading industry as a whole.
4. Removal of fees to make small payments in cryptocurrencies: this would be especially important when paying using cryptocurrencies for daily activities such as paying for lunch in a restaurant. This would be huge in terms of adoption and would encourage people to spend their cryptocurrencies. Currently, in Japan, you need to pay taxes twice when making a purchase using cryptocurrency, once for the cryptographic tax and again for the sales tax.
This is the second time that Fuji has proposed the crypto-friendly in the parliament of Japan. Previously, his proposal was ignored by chance, but we hope this time will not be ignored randomly. But until we see a law passed by law, this is just a proposal and until we see these changes in reality, cryptocurrency enthusiasts in Japan will continue to suffer under an unfair tax regime.
ICO Regulations of Japan
The Japan Financial Services Agency is ready to implement updated regulations on the initial market for the supply of coins. The FSA has held ICO study groups to access the best ways to handle ICO regulation, citing the need to collect fraudulent offers. The FSA instead of creating completely new rules is trying to extend the application of two existing laws. The first law is the act of payment services and the second is called financial instruments and act of exchange.
Financial instruments and exchange, in particular, provide a regulatory framework for securities and securities companies in Japan. The new scope of the regulations would include the need for information such as disclosure, ICO financial health screening offered, and regulation of token distribution channels and possibly limiting the amount of money investors can invest in. an ICO data. Anyone wishing to keep an ICO in Japan should also be registered with the FSA. Essentially, the FSA wants to let ICOs happen, but in a way that helps investors better understand the accuracy of an ICO without causing too much trouble for the ICO itself. But this could end up impacting the number of ICOs in Japan being launched and potentially limiting the possibility for investors in Japan to participate in a wider range of foreign ICOs.
This seems to be the direction in which the FSA is heading, but it still has to get approval from parliament and is likely to be subject to at least some form of supply before seeing a final bill. Overall, while many do not like the idea of government regulations, this will actually be a good thing to help provide greater clarity and, hopefully, increase the number of high quality and legitimate offers available to investors in Japan.
It seems that lawmakers in Japan are continuing to be at the forefront of the cryptocurrency regulation scene. If all the rules discussed above will be passed, this would be a great indicator for the future of cryptocurrency in Japan, which is currently, of course, one of the most friendly cryptic countries.