Member Of Japanese Parliament Proposes New Crypto Taxes
Takeshi Fujimaki, a member of the Japanese Parliament, put forward the initiative to change tax rules for crypto owners in order to revive and develop the digital asset market, CCN reports.
The tax process for crypto investors is rather difficult due to the large market volatility, especially during a severe recession in 2018. An investor may receive a profit of 50% within one week but may be at a loss in the next seven days.
Given the peculiarities of the crypto market and the desire to reduce the tax burden on crypto owners, Fujimaki proposed a number of changes. First, the current income tax rate of 55% should be reduced to a fixed 20%. Secondly, it is necessary to carry out a quarterly or annual postponement of taxes. Thirdly, to exempt small crypto payers from taxes and not to tax operations associated with cryptocurrencies exclusively.
All these changes, according to Fujimaki, will have a positive impact on the investment climate, will restore the damaged market sector, and will contribute to its development. Besides, crypto trading platforms will be able to increase their daily volumes.
Changes may also affect the South Korean crypto market. Historically, South Korea, being the third exchange market after the United States and Japan, followed the legal framework adopted by its eastern neighbor in respect of cryptocurrencies.
As previously reported, the Financial Services Agency of Japan will introduce new rules regarding ICO.