Categories: Bitcoin Business

Japanese Representative Says Taxes Are Crippling the Growth of Crypto and Blockchain

Click here to view original web page at dailyhodl.com

Takeshi Fujimaki, a member of the House of Councillors of Japan and acting President of the Japan Restoration Committee, says the country’s tax system is slowing the development and adoption of cryptocurrency and blockchain technology. The Financial Supervisory Authority is proposing tax reforms that make it possible for crypto enthusiasts who spend, trade or hodl their investments to do so without burdensome tax laws.

Fujimaki says,

“Today I received an explanation of the Financial Supervisory Authority’s submission bill. One is a crypto asset related bill. I asked some points about ‘the bill from the viewpoint of customer protection and the viewpoint of promoting innovation.’ It is the tax system that inhibits the development of cryptocurrency and blockchain.

If you want to promote cryptographic assets and blockchains, the FSA is also making a request of the tax authority.”

Reported by local news outlet CoinPost, the proposed tax system recognizes that there are different use cases for cryptocurrencies generating different types of transactions. Each should be taxed separately and accordingly.

Income

If someone receives their salary in Bitcoin or other cryptocurrency, they should be fully taxed.

Trading Gain

If someone reaps a trading gain, they should not be fully taxed.

Trading Losses

The volatility of crypto trading makes it possible for traders to sustain losses for years. Loss carryforward deductions should apply as they do with other assets such as stocks and mutual funds.

Currently in Japan, a crypto investor isn’t allowed to carry over trading losses to the following year. So there could be a scenario where a trader incurs a loss this year, followed by a fair profit the following year but the overall profit/loss is still negative – and the trader has to pay taxes.

Tax exemption for crypto-to-crypto trading

Calculating the profit and loss for each and every crypto-to-crypto trade is extremely complicated and burdensome. This alone discourages people from participating in the cryptocurrency market and dampens liquidity. To increase trading volume and stimulate the market, trading between cryptocurrencies should be tax free.

Make small amount settlements tax-free

The settlement of cryptocurrencies in the real world is where innovators and developers expect massive adoption. To make it happen, small crypto transactions should be exempt from taxation, allowing crypto payments in the real world to grow.

Currently the Japanese yen is the second most traded national currency for Bitcoin, accounting for 43.31% of the market. The US dollar is number one at 44.23% of the market, according to data compiled by Coinhills.

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

The Entire Bitcoin Dynamic is Changed by the Lightning Network, Says Samson Mow

Samson Mow, BTCC Exchange’s Founder and Magical Crypto Friends and Blockstream’s present CSO, recently shared his views on Bitcoin’s status… Read More

4 hours ago

Bitcoin History Part 15: Silk Road Is Born

Silk Road launched in February 2011 as the darknet’s first bitcoin-based marketplace. Within four months, it would be the darknet’s… Read More

4 hours ago

Sunday Digest: Bitcoin Price, Pantomime Season, More Craig Wright Lies

Share Tweet Send Share This week, US President, Donald J Trump, decided that he would like to buy Greenland, thereby… Read More

4 hours ago

Bitcoin Twitter Is Daydreaming About a Hong Kong Bank Run

Crypto-fever dreamers cheered as Hong Kong protesters suggested organizing a bank run, but apparently rioters didn't flock to bitcoin. |… Read More

4 hours ago

World Bank issues second tranche of Ethereum blockchain kangaroo bond

'Kangaroo bond' is the name given to a foreign bond, issued in the Australian market and denominated in Australian dollars.… Read More

4 hours ago

What the Theft of a BBC Reporter’s $30,000 in Ethereum Shows About Cryptocurrency

Last week, BBC contributor Monty Mumford lost $30,000 of Ethereum . This came after a logical thought process: invest in… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More