Doubtful Acceptance Of Changed Crypto Taxation In Japan

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According to a report on June 25, Japan’s Minister of Finance finds it doubtful for the people to accept a change in the taxation of cryptocurrency transactions.

Japan’s Deputy Prime Minister Taro Aso expressed his opinion regarding crypto transactions during an Upper House Budget Committee meeting, he said crypto transactions should be taxed as a “separate self-assessment taxation” rather than their existing classification as “miscellaneous income,” while showing doubt over the public’s reaction due to the tax fairness.

Crypro transactions, up to date, have a tax rate of approximately 55 percent, and changing its category would cause it to a 20 percent flat tax similar to stocks or forex trades.

Aso also regarded during the same meeting that the position of cryptocurrency in the international financial sector is shaky. And though he mentioned the importance of the development of blockchain technology, he also added that supporting the technology can be questionable, given that it carries cryptocurrencies.

Following the $530 million hack of Japanese crypto exchange Coincheck in January, Japan’s Financial Services Agency (FSA) has been busy last week, announcing business improvement notices to crypto exchanges as part of their ongoing regulatory inspections.

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