Japan’s “Unfair” Taxation is Stifling Crypto Industry
Japan’s ruling party approved in early December a tax plan for the next year. Among other things, it has a section on cryptos. Many traders and investors have counted on benefits or at least easing of tax pressure, but this has not happened.
The fee for listing tokens on crypto exchanges remains in effect. The platform must pay even if the asset is not traded, but it is on the list of available ones, and the market capitalization of the company has grown.
The issuing company is also subject to taxation upon entering any market. And if it just distributes “coins,” then both the platform and the user will have to pay. In some cases, this fee reaches 35%.
The tax rate on income from transactions with cryptos varies depending on several factors, including the volume of assets. Most large companies are required to pay up to 55% of their profits to the treasury.
Such harsh conditions have forced some firms to leave the national market. According to the founder of the consulting company Gracone, Mai Fujimoto, at least eight major “players” have already left Japan.
Some of them chose Singapore. But here, too, crypto companies are forced to obey fairly strict rules.
Sota Watanabe, founder of Astar Network’s multi-chain DeFi Application Center, believes the industry lacks effective cooperation between legislators and business representatives.
