Japan’s Finance Minister Considers a Change to Crypto Taxation

Japan Cryptocurrency Tax

Japan Cryptocurrency Tax: Taro Aso, the Deputy Prime Minister and the Minister of Finance for Japan, has concerns over cryptocurrency taxes in his country but believes it to be doubtful that the public would accept any changes made to the cryptocurrency taxation law.

Japan Cryptocurrency Tax

Currently, cryptocurrencies are taxed as “miscellaneous income”. Items taxed under this category can incur taxes up to 55%. However, Aso feels a better approach to cryptocurrencies is to tax them as “separate self-assessment taxation”.

This category would bring cryptocurrency taxes to a flat rate of 20 percent which is similar to stocks or forex trades. The question of “tax-fairness” is a concern, however, as the public is expected to react strongly against this potential categorical shift.

Upper House Budget Committee Meeting

Aso spoke during today’s Upper House Budget Committee meeting, where he also talked about the importance of developing blockchain technology. But he added that supporting it is controversial considering the technology’s underpinning of cryptocurrencies. Aso believes that the position of cryptocurrency in the international financial sector remains uncertain.

During the same meeting,  He also spoke of the importance of the development of blockchain technology but added that supporting the technology can be controversial, given that it underlies cryptocurrencies.

What About Coincheck?

Japan is considered a crypto-positive nation but its government has become stricter on cryptocurrencies especially since the infamous hack of Japan’s crypto exchange Coincheck back in January of this year. In this one hack, the equivalent of $530 million USD was stolen, making this the largest hack yet in the cryptocurrency sphere. The exchange is still making repayments to its customers.

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Since this major hack, Japan’s Financial Services Agency (FSA) has been cracking down on exchanges and businesses relating to cryptocurrency. The FSA has been issuing business improvement notices to several cryptocurrency platforms. Inclusive in their list are exchanges that may have involvement with an organized crime group for example.

What are your thoughts on cryptocurrency taxes? Is it fair to set a flat-out tax rate of 20 percent across the board? Share with us below!

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