Japan’s leading financial groups, including major banks, crypto exchanges, and securities companies, are seeking regulatory approval for crypto ETFs.
Mitsubishi UFJ Trust and Banking, Nomura Securities, Daiwa Securities, BitFlyer and others released a coalition report on Friday calling on regulators to review the tax framework for virtual currencies.
Japan’s virtual currency tax is currently set at 55%. The group is calling on regulators to lower the tax in line with the stock market’s 20% tax policy. Last week, Democratic Party of Japan leader Yuichiro Tamaki also promised to lower the virtual currency tax to 20% if elected.
“If you think that crypto assets should be taxed separately at 20% instead of being treated as miscellaneous income, please vote for the Democratic Party of the People. There is no tax when exchanging crypto assets for other crypto assets.” Mr. Tamaki said.
[Hope to spread]
The Democratic Party of Japan is proposing clear tax cuts and regulatory reforms regarding crypto assets.
Those who think that crypto assets should be separated into 20% money rather than miscellaneous results should join the Democratic Party of the People.
Perhaps it would be great if you could spread the word about the NDP’s pledge. pic.twitter.com/hpbX966yTJ
— Yuichiro Tamaki (Representative of the Democratic Party of Japan) (@tamakiyuicular) October 20, 2024
A group of Japanese technology giants argued that Bitcoin and Ethereum ETFs are safer long-term investment options due to their size and “stable track record.”
Japan’s Financial Services Agency (FSA) remains cautious about crypto ETF products despite their success in the US. Japan’s crypto industry has been pushing for a more regulatory-friendly environment in which to operate cryptocurrencies, but the Mt. Gox scandal remains a thorn in the side of the industry.
Nevertheless, the industry is trying to learn from past mistakes. Last month, the Financial Services Agency proposed a major overhaul of the country’s tax code for fiscal year 2025.
The FSA has advocated treating cryptocurrencies as traditional financial assets and linking them with public investment. This move could pave the way for a more favorable tax environment for crypto holders in Japan.
The Financial Services Agency states, “With regard to the tax treatment of virtual currency transactions, virtual currencies should be treated as financial assets that should be invested by the public.”
Japan considers lowering virtual currency tax rate in full review in 2025
The country plans to reduce taxes on cryptocurrencies to a flat 20%, similar to taxes currently applied to traditional assets such as stocks.
Cryptography-related activity in Japan’s private sector also shows growing enthusiasm for the field.
Just last week, crypto custody company Komainu announced that it plans to acquire Singapore-based custody company Propine Holdings. Backed by Nomura, the acquisition of Komainu is pending approval from the Monetary Authority of Singapore (MAS).
Nomura-backed Komainu to acquire Singapore-based storage company Propine
Komainu plans to acquire Singapore-based storage company Propine, pending AMS approval
In August, Sony announced its own public blockchain, Soneium, in collaboration with Singapore-based Web3 company Startale Labs. The new Layer 2 network built on top of Ethereum utilizes optimistic rollup technology that allows users to trade more cheaply.
Soneium was developed using the Optimism blockchain ecosystem OP Stack, allowing developers to create their own networks using Optimism’s technology. Coinbase’s Base and Worldcoin’s World Chain also used OP stacks.
‘Soneium’: Sony unveils its own public blockchain in collaboration with Singaporean Web3 company Startale Labs
Sony owns 90% of Startale Labs, Singapore joint venture with Sony Block Solution Labs
