The crypto community in Japan might see a new day soon as the Japanese Financial Services Agency has been requested by the Japan Association of New Economy (JANE), to significantly decrease the existing tax rate payable for earnings made via cryptocurrency transactions and trading.
An application addressed to Japan’s monetary controller, was sent by a team directed by Hiroshi Mikitani, the CEO of Rakuten – one of Japan’s biggest e-commerce platforms. The application made a request to the FSA requesting that the tax plan used for cryptocurrencies be based on progressive taxation instead and not general taxation.
Details of Japan’s Crypto Tax Scheme
Presently, all earnings from cryptocurrency trading transactions are taxed at 55 percent. The progressive taxation which is used generally for the stock exchange and foreign exchange transactions in the community will significantly lessen the tax percentage to about 20.
The application also said that the FSA’s regulation on the crypto sector might impede the progress of the sector and suffocate ideas that would move the sector forward. To be more precise, the application sought for the elucidation of certain things including the correct procedure for an initial coin offering (ICO) settlement, the FSA’s range on procedures and regulations along with specifics regarding derivative trading.
The FSA has also announced that all crypto licenses will now take a maximum of six months for rejection or approval.
Rakuten’s Crypto Inclusion
Popularly known as “Japan’s Amazon” because if it’s sheer strength, Rakuten has made the decision to review its business framework in such a way that transactions and payments embody all its cryptocurrency dealings.
There are also plans to do a reinvention for Spotlight Inc., a loyalty branch for Rakuten. It will now be called Rakuten Payment and will also launch as a crypto exchange.