Opposition lawmaker Takeshi Fujimaki has proposed several changes in taxation of crypto assets in Japan. The politician has a background in the financial sector, and the changes in regulation he requires would put cryptocurrencies back in the same category as stocks in the Asian country.
According to the website were the proposal is announced, the goal of this campaign is ‘to change the virtual currency taxation system to promote the wider penetration of virtual currency into society and encourage the development of blockchain technology’.
For reaching said goal, Fujimaki is proposing four taxation changes:
1. Reduction of trading profit tax from 55% to 20%.
2. Enabling deduction of previous losses on crypto from profits in the next years.
3. Tax exemption for profits obtained from trading within virtual tokens (so no tax until you go back to fiat).
4. Tax exemption for small payments made in crypto. It is not clear how small, but the proposal refers to 3000 yen, or about $25 U.S. dollars, as an example.
The proposal is currently being debated on Reddit, where many were happy regarding the changes proposed. However, other users reminded that the cryptocurrency taxation situation is much better in many other countries:
Fujimaki, who worked as a banker at the Japanese branch of JPMorgan Chase for about 15 years, is concerned about the possibility of the tax system crushing the future of virtual currencies. However, his political party, the right wing nationalist Nippon Ishin no Kai, also known as Japan’s Innovation Party, is merely the third of the opposition and has a very small presence on the country’s legislative chambers.
Government plans seem to be going on a different direction, judging from the latest reports where focus was set on collecting taxes from successful traders, controlling money laundering or requiring ICO’s to register with the FSA.
Economist Harald Malmgreen tweeted his insights regarding Japan’s regulatory intentions in the cryptocurrency space:
By the way, just back from Japan, planning for digital currency well under way at highest levels— Harald Malmgren (@Halsrethink) December 11, 2018
Correct, probably accompanied by ban on private alternatives https://t.co/jEX3soQTeg— Harald Malmgren (@Halsrethink) December 11, 2018