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Japan to Revise Cryptocurrency Regulations, Possibly Reducing Tax BurdenJapan is preparing to review its cryptocurrency regulations, which may lead to a reduction in taxes on digital assets. The Financial Services Agency (FSA) plans to assess whether the current Payment Services Act provides sufficient investor protection. This review could reclassify cryptocurrencies as financial instruments under investment law, potentially strengthening investor protections and leading to significant changes, according to Bitbank analyst Yuya Hasegawa.
🛍 Industry leaders hope to lower the tax on cryptocurrency income from the current 55% to 20%, aligning it with taxes on other assets such as stocks. Japan’s strict regulations were introduced in response to past incidents, including the Mt. Gox hack and recent security breaches on the DMM
Bitcoin platform.
Despite the strict rules, trading volumes on local exchanges are recovering, with the monthly volume approaching $10 billion in 2024. Major companies like Sony and Mitsubishi UFJ Financial Group are also exploring blockchain and stablecoin opportunities.
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