An economic alliance from Japan, called the Japan Association of New Economy or JANE, has put forward an earnest request to the financial authority of the country, the FSA (Financial Services Agency). The request was for effecting a reduction in the rate of taxation currenty applied to income borne out of trading in cryptocurrencies.
JANE is led from the forefront by a person called Hiroshi Mikitani, who serves as the CEO of Rakuten, an e-commerce major from the country. The proposal that was sent in to the FSA from JANE requested the regulatory body to consider taxing crypto-related earnings in line with progressive taxation rather than general taxation.
As of now, crypto traders in Japan have to give away 55 per cent of whatever they earn by trading cryptocurrencies as tax. If the principle of progressive taxation is applied on the income generated by crypto trading, then that high rate of taxation will come down to just 20 per cent.
20 per cent is the rate of taxation usually imposed on other forms of investment trading, such as forex trading or stock market trading. The request also includes an appeal to the FSA to make crypto-to-crypto transactions exempt from taxation completely.
The proposal outlined an earnest appeal to encourage innovation in the fintech space by refraining from the imposition of restrictive rules on how crypto traders and users operate within the country. The proposal also referred to the FSA clarifying the scope of its regulations with regard to crypto custody business, ICO (initial coin offerings) settlement, derivative trading and more.
The FSA is reportedly already working on the approval of licenses for crypto firms and businesses. The process started on 12th January this year and is expected to be completed within six months of that date. By the time of its completion, the companies will get to know whether their licenses stand approved or rejected.
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