Rule

The Japanese tax administration has offered companies that issue cryptocurrencies a 30% tax break under a revision of its corporate tax rules. 
Japan’s National Tax Agency (NTA) has revised its corporate tax rules to provide a tax exemption to companies issuing cryptocurrencies. Under the revised regulations, companies will no longer be taxed on unrealized gains. Under the previous rules, companies issuing cryptocurrencies were taxed on unrealized gains at the end of a tax period. 
The NTA explained that companies’ holdings would be excluded from the market evaluation of a company’s assets if specific terms are met. 
Japan’s previously harsh tax regulations forced many domestically established crypto and blockchain firms to set up shop elsewhere. Japan’s ruling Liberal Democratic Party (LDP) approved the proposal for the revised rules in December to improve business conditions for companies issuing cryptocurrencies in Japan. Japan Introduces Stricter AML Measures 
The Japanese crypto industry is changing after introducing stricter anti-money laundering (AML) procedures. Since June 1, tougher AML measures were introduced to trace crypto transactions to align Japan’s legal framework with international crypto laws after its AML measures were found to be lacking by the Financial Action Task Force. The cabinet revised the relevant crypto rules in December, focusing on monitoring the movement of illicit funds under the pretext of legal crypto transactions. 
Japan is such a significant player in the global crypto market, and the government was forced to address the risk associated with the industry. 
Part of Japan’s stricter policy includes the enforcement of the “Travel Rule.” The Travel Rule aims to ensure the precise monitoring of illicit proceeds. Under this rule, any financial institution processing a crypto transfer exceeding $3,000 must share customer information with the recipient exchange or institution. 
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Japan Offers Crypto Companies a 30% Tax Break

Crypto Daily™

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