Japan Eases Tax Burden on Token Issuers

Token issuers in Japan are exempt from paying 30% tax on unrealized profits from issued and held coins after clarification of the relevant law by the National Tax Agency.

The agency made the proposal in August last year.

This was approved by the committee of the Liberal Democratic Party four months later, and then by Parliament, in order to stimulate the growth of the financial and technology sectors.

Consequently, entrepreneurs could create start ups in Japan instead of in other jurisdictions.

In January of 2023, the media reported the readiness of the country’s authorities to ease the regulation of stablecoins no later than the end of the same month.

Furthermore, the Japan Association of Virtual Currency Exchanges have asked the FSA to increase the maximum leverage from 1:2 to at least 1:10. Lastly, the so-called “Travel Rule” from the Financial Action Task Force (FATF) has been operating in the country since June 1, 2021 with the purpose of monitoring crypto transactions for Anti-Money Laundering (AML) purposes.