Japanese regulators to revise tax laws to boost crypto industry through tax exemptions on companies' long-term cryptocurrency holdings.
The Japanese government has proposed pivotal changes to the country's crypto tax policies in an effort to spur innovation and growth in the emerging digital asset industry.
In a draft tax reform plan for the 2024 fiscal year, Japan's ruling Liberal Democratic Party and its coalition partner Komeito have called for an exemption on taxes levied against unrealized crypto gains made by companies investing in cryptocurrencies as long-term holdings.
Under the current tax regime, Japanese corporations are required to pay taxes annually on any increased value of cryptocurrency held on their balance sheets. By removing this obligation for long-term investments, policymakers hope to encourage domestic businesses to build out crypto and blockchain capabilities.
In parallel with the crypto tax decision, Japan is pushing forward with preparation to launch its CBDC in mid-2024. Major Japanese financial services groups and telecoms firms are collaborating on the project.
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