The Japan Blockchain Association seeks government to amend the cryptocurrency tax system to promote Web3 development

ChainCatcher News, the Japan Blockchain Association (JBA) calls on the national government to amend the tax system to accommodate cryptocurrencies. The JBA claims that its review of the current tax system indicates that the growth of Web3 businesses in Japan is being hindered.

Specifically, it demands that the personal transaction tax be set at a uniform rate of 20% and that profits generated from crypto transactions be exempt from taxation. Statistics from the Japan Cryptocurrency Exchange Association show that as of April 2023, approximately 6.8 million crypto accounts have been opened. The JBA believes that if the tax system is amended, investment will increase, according to a survey.

The JBA also calls for the elimination of the unrealized profit tax on third-party issued tokens at year-end, stating that companies will no longer need to sell their held tokens to pay taxes, which will lower the entry barriers for Web3 businesses.
Earlier this week, Japanese Prime Minister Fumio Kishida stated that Web3 has the potential to change the traditional internet framework and contribute to social transformation, and the government is committed to creating an environment conducive to promoting Web3.