Japanese crypto groups submit request to government for tax reform on virtual currencies by 2025

The Japan Crypto Asset Business Association (JCBA) and the Japan Crypto Asset Exchange Association (JVCEA) jointly submitted a request for tax reforms on crypto assets in 2025 to the government. Under the current tax system, income generated from crypto asset transactions is generally classified as miscellaneous income and is therefore subject to comprehensive taxation. The income tax levied on miscellaneous income fluctuates between 5% and 45%, and if resident tax is added, the tax rate can be as high as 55%. The request states that the current tax system "prevents citizens from acquiring and using virtual currencies" and that the current tax system is the biggest obstacle to the development of Web3 promoted by the government. In addition, it is recommended to introduce a separate self-assessment tax and loss carry-forward deduction. On the 19th of this month, the Japan Blockchain Association (JBA) also submitted a request for tax reforms on virtual currencies in 2025 to the government. (Coinpost)