Japan Implements Tax Exemption For Token Issuers
Date
6/25/2023 11:00:10 PM
(MENAFN- coinxposure)
in japan, token issuers are no longer required to pay corporate taxes on unrealized Cryptocurrency gains , per a june 20 revision of the law by the national tax agency.
almost six months after the japanese government approved a proposal eradicating the requirement for crypto firms to pay taxes on paper gains on tokens they issued and held, the tax exemption goes into effect.
japan's lawmakers have debated new crypto tax rules as part of more significant tax reform for 2023 since last august.
still, the tax authority has only given its final approval this week. under the new regulations, japanese companies that issue tokens are exempt from the 30% corporate tax rate on their holdings.
even unrealized gains were subject to taxation before this law.
law interpretation notification: partial revision of corporate tax. source: national tax agency
the ruling liberal democratic party (ldp) intends to“make it easier for various businesses to conduct transactions involving token issuance.”
the japanese cryptocurrency industry has recently undergone significant adjustments.
japan began enforcing stricter anti-money laundering (aml) measures to trace cryptocurrency transactions on june 1 to align its legal framework with global crypto regulations.
in december, lawmakers revised the aml legislation after the financial action task force (fatf) determined it was inadequate.
in june last year, the government passed a law prohibiting non-banking institutions from issuing stablecoins.
see also crypto token price manipulation lawsuit wins $2.8m for sec 2 months ago
the law, which was just recently implemented, restricts stablecoin issuance in the country to licensed banks, registered money transfer agents, and trust companies.
japan was one of the first nations to legalize crypto as a private asset, and its crypto regulations are among the world's harshest.
following the hacks of mt.gox and coincheck, japan's financial regulator tightened rules on cryptocurrency exchanges.
local authorities are believed to have facilitated the rapid return of assets to ftx users in japan following the global collapse of the business, in contrast to users in other countries who lacked a clear timeline for their refunds.
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