Takeshi Fujimaki, a Japanese congressman and lawmaker, has proposed major changes to the current taxation system for cryptocurrencies in Japan to revitalize the market — to benefit crypto traders, broaden the adoption of cryptocurrencies and encourage the development of blockchain technology in the country.
“We believe that it is necessary to change the current virtual currency taxation system to an appropriate tax system in order to develop virtual currency/blockchain technology. The tax system should not deprive the future of virtual currency and blockchain,” — said Fujimaki.
The current tax rate of 55 percent on profits from cryptocurrency transactions could be lowered to 20 percent — and crypto-to-crypto trading (like between ETH and BTC) and small payments (which may increase with more stores accepting crypto and more individuals using them to pay for goods and services) could be exempt from taxation.
“In order to increase the volume of transactions between virtual currencies and to revitalize the virtual currency market, trading between virtual currencies should be tax exempt.” — Added Fujimaki.
Why it is important
- Japan is one of the biggest cryptocurrency markets in the world. If implemented, the taxation changes could inspire other governments to carry out similar policies.
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