Japan's finance minister, Taro Aso, has spoken out on the cryptocurrency tax. He was responding to a question posed by Japan Restoration Association member Shun Otokita during the Financial Affairs Committee meeting held on June 2. Japan, cryptocurrencies and taxes "Of the 1,900 trillion yen [$17.6 billion] of financial assets held by households in Japan, about 900 trillion yen [$8.4 billion] is currently held as cash deposits, which is abnormal," - Aso said. Japan, by the way, is a strange country. On the one hand, it is famous for its new technologies and the fact that it already recognized BTC as a means of payment in 2017; on the other hand, there are many people there who keep their savings in cash. This is due to the fact that we have an aging population there, while senior citizens are not open to mobile payments. The finance minister, on the other hand, went on to say that it would be difficult to convince a significant portion of investors in Japan about cryptocurrencies today, and this means that there is no need to adjust the current tax rate. Why is this important? In Japan, almost all cryptocurrency-related income - from trading, mining, or lending - is classified as miscellaneous income, so it's subject to a rate as high as 55 percent. However, the country taxes gains from assets at a rate of 20 percent. That's why BTC supporters would like to see the government revise its regulations for accounting for cryptocurrency gains. Limiting leverage During the meeting, Otokita, while addressing members of Japan's Financial Services Agency (FSA), the country's financial regulator, also asked whether it was appropriate to limit the leverage limit on cryptocurrency trading to 2x. He noted that when the regulations were created, there was not enough time to discuss with experts. The leverage limit was lowered from 4x. The new regulations went into effect on May 1. The agency said it spoke with cryptocurrency experts and FX market experts on the topic and reportedly took into account comments from those quarters as well. The FSA maintains that the lowering of the leverage cap was a suitable overly volatile cryptocurrency exchange rate. It cited the example of the price drop in March. Tags btc Japan tax
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