Japan Blockchain Association Seeks Government to Amend Crypto Tax System to Advance Web3 Development

Odaily Planet Daily News The Japan Blockchain Association (JBA) called on the country's government to modify the tax system to accommodate cryptocurrencies. JBA claims that its review of the current tax system shows that the growth of Web3 businesses in Japan is hindered. Specifically, it calls for setting the personal transaction tax at a flat rate of 20 percent and removing the tax on profits generated from crypto transactions. Statistics from the Japan Association of Crypto Asset Exchanges show that as of April 2023, approximately 6.8 million crypto accounts have been opened. Based on a questionnaire, JBA believes that if the tax system is revised, investment will increase. The JBA also called for the removal of the year-end unrealized profit tax on token issuance by third parties, saying that companies no longer need to sell their token holdings to pay taxes, which would lower the barriers to entry for Web3 businesses. Earlier this week, Japanese Prime Minister Fumio Kishida stated that Web3 has the potential to change the traditional Internet framework and contribute to social change, and the government is working to create an environment conducive to the promotion of Web3. (CoinPost)