The Japan Blockchain Association (JBA) has called on the Japanese government to overhaul its tax system, aiming to promote cryptocurrency transactions and facilitate the growth of web3 businesses within the country, as reported by Coinpost.
Currently, the existing tax rules are impeding the development of web3 technologies, which utilize blockchain and cryptocurrencies for innovative internet solutions.
To improve the situation, the JBA proposes a flat 20% tax rate on personal cryptocurrency transactions and the complete elimination of taxes on profits derived from crypto transactions.
Notably, Japan boasts approximately 6.8 million cryptocurrency accounts, and the JBA believes that implementing their suggested tax changes will attract more investors to the crypto market.
Moreover, the JBA is advocating the cessation of taxing unrealized profits on tokens issued by third-party companies. This measure aims to reduce barriers for new web3 businesses by eliminating the need for token sales solely for tax payments.
Japan’s Prime Minister, Fumio Kishida, is enthusiastic about web3 technologies’ potential to bring positive transformations to the internet and society. The government is committed to fostering an environment conducive to the advancement of web3 technologies in Japan.
Also Read: Japan’s Prime Minister Supports Web3 for Digital Innovation
