Japan’s ruling Liberal Democratic Party (LDP) on Thursday approved a proposal to exempt unrealized capital gains on tokens held on the books of companies that issue cryptocurrencies, Bloomberg reports, citing party member Akihisa Shiozaki. rice field.
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quick facts
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The proposal, considered by the ruling party’s tax committee, aims to improve the business environment for companies that issue cryptocurrencies, Shiozaki told Bloomberg.
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Japan currently imposes a tax of around 30% on companies that enjoy unrealized profits from holding cryptocurrencies.
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The administration of Prime Minister Fumio Kishida is expected to finalize annual tax policy guidelines by the end of this year, but tax law revisions are usually submitted to parliament in January.
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The tax law follows the authorities’ previously announced plans to cut bureaucracy in the cryptocurrency industry to encourage innovation and investment, despite the collapse of FTX.com’s cryptocurrency exchange that operated in Japan. It shows progress.
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The Japan Virtual Asset Exchange Association (JVCEA), the self-regulatory body that oversees domestic cryptocurrency exchanges, announced in October that it would ease the listing review process for cryptocurrencies.
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Kishida, who took office as prime minister in September 2021, has been an advocate for digital finance and blockchain adoption, recently announcing further investments in non-fungible tokens (NFTs) and the metaverse industry. He has included cryptography in his plans to revitalize the economy under a “new capitalism” mandate.
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