The Japan Blockchain Association (JBA) has pleaded with the government of that nation to amend its current tax system so that cryptocurrencies might be treated as legal tender. The JBA’s thorough examination of the present tax structure uncovered obstacles to the growth of web3 businesses in the country, media reports said.
The group has specifically asked for a 20% flat rate on all individual cryptocurrency transactions and the elimination of all taxes on cryptocurrency income. According to CoinPost, the JBA proposed adjusting taxes in a certain way in the hopes of attracting more people and businesses to the cryptocurrency market.
The Japan Crypto Asset Exchange Association estimates that by April 2023, 6.8 million people would have established cryptocurrency accounts. The JBA has concluded, based on a questionnaire, that changing the tax structure would substantially increase investment in the crypto field.
In addition, the JBA has advocated for an end to the practise of taxing unrealised gains on tokens issued by a third party at the conclusion of the calendar year. The group claims this change would reduce obstacles to entry for web3 enterprises by allowing corporations to keep onto tokens without selling for tax reasons.
Recently, Japanese Prime Minister Fumio Kishida has spoken out in favour of web3 technology, seeing its potential to disrupt the status quo of the internet and aid in social change. He guaranteed that the government would make every effort to create conditions that would hasten the general implementation of web 3.0 developments.
Japan hopes to become a leading centre for crypto-based businesses by adopting the JBA’s suggested tax policy and embracing the revolutionary potential of web3. This would usher in a new age of digital innovation and economic progress for the country.
