Japan's Prime Minister Expresses Caution Over Unified Taxation On Crypto Assets

According to Odaily, Japan's Prime Minister Shigeru Ishiba recently addressed the House of Representatives, expressing caution regarding the application of a unified 20% separate taxation rule on crypto assets. He questioned whether it is appropriate for the government to encourage investments in stocks and investment trusts with investor protection regulations for crypto assets. Ishiba raised concerns about public understanding of the idea of applying a separate self-assessment tax, indicating that several issues need careful consideration. This statement was made in response to questions from Tetsu Asano, a member of the Democratic Party for the People, who inquired about various aspects of crypto assets. Asano highlighted that while the global market for crypto assets is rapidly expanding, Japan's current taxation policy, which can reach up to 55%, is becoming a barrier, leading to the outflow of Web3 companies and personal assets from the country. He argued that tax reforms, such as implementing separate taxation for self-assessment and loss carryforward deductions, are necessary to promote business and encourage the return of assets to Japan. Asano also pointed out the growing demand for Bitcoin ETFs from institutional investors like BlackRock, the largest asset management company in the United States. He emphasized the urgent need to improve the trading environment for crypto asset ETFs, stating, "We need to implement reforms to cultivate the Japanese market and enhance its competitiveness." Ishiba responded by noting that the inclusion of crypto assets in ETFs should be considered based on whether these assets should be made more accessible to the public for investment.