Japan is confused about crypto tax checks

Japan is confused about crypto tax checks

According to primexbt, senior Japanese government officials said that because the current national tax system is not capable of implementing digital asset declarations, it is likely to cause investment capital to flow abroad.

In a response session at the Financial Reporting Committee on April 6, Mr. Shun Otokita - representative of the Japan Innovation Party pointed out the importance of market research before issuing separate tax regulations. specifically for crypto.

Mr. Otokita also expressed concern about Japan's high taxes. He acknowledged that it is difficult to immediately change the tax legal system to apply to digital assets and said that market research is required to determine how to change.

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New Regulations for Cryptocurrencies in Japan

In Japan, it is not possible to identify individuals participating in a transaction by just the address in the blockchain, it is not possible to tell if it is a non-taxable donation or a taxable service fee. Mr. Taro Aso - Minister of Finance of Japan said that the failure to monitor such transactions is the main reason for the slowness in asset inspection.

As there is currently no official legal document in Japan governing electronic money, the addition of existing regulations is the only way for the time being for crypto to have legal status in Japan. this Asian country. The Payment Services Act and the Financial Instruments and Transactions Act will be enforced by the Financial Services Authority on May 1.

When it comes to taxes, however, the Financial Services Authority is unable to inspect any transactions other than those in registered cryptocurrency. Mr. Aso asked the commission to conduct a tax investigation of crypto-related transactions, while Mr. Otokita stated that the Cryptocurrency Business Association is conducting an investigation into the matter.

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