Following the surging popularity of digital assets globally, various nations have already introduced laws concerning crypto assets. Some countries have already considered it a taxable investment under the nation’s financial regime.
According to recent information, Japan’s Financial Services Agency (FSA) is gearing up for reforms in the nation’s current tax code. Earlier, the agency urged restructuring the tax codes and considering crypto assets similar to traditional financial assets.
The move to restructure the tax codes came after a request received by the agency in August, which seeks to include cryptocurrencies under the same tax regime as traditional financial assets at a lower rate.
“Regarding the tax treatment of cryptocurrency transactions, cryptocurrency should be treated as a financial asset that should be an investment target for the public,” the FSA quoted.
Some market experts claim that the growing adoption of digital assets majorly fuels Japan’s move to entitle crypto to the tax regime for 2025. crypto profits in Japan are currently taxed as miscellaneous income between 15% and 55%, as per crypto accountants TokenTax.
Why Revision in the Tax Codes?
Several market analysts claim the move to revise the tax codes came following the rising tax revenue from crypto in other nations. However, it is also speculated that Japan’s growing number of digital asset holders has backed the historic move.
It is crucial to note that several nations are revising the tax slabs to collect more taxes from cryptocurrency profits. Some countries have a substantial crypto user base, but they collect comparatively lower taxes.
Most of the time, it has been identified that to get rid of massive taxes, some investors and traders use unethical processes, including money laundering.
As per a claim, Japan’s total number of crypto users is expected to reach 500k by the closing of Q4 2024.
In an August 28, 2024, media address, the economic minister of Japan emphasized lowering the taxes on Web3 startups. The announcement will help to boost the region’s evolving Web3 industry.
Crypto Market Price Update
The fear and greed index by CoinMarketCap is at 34, reflecting bear dominance and huge selling pressure.
At the time of publishing, the cryptocurrency market capitalization was $1.98 Trillion with an intraday decline of 4.02% and below 20, 50, 100, and 200 days EMA.
Since August 26, 2024, till writing constant selling pressure has been observed in Bitcoin volume; when writing, it was trading at $56,515 with a decline of 1.74% in the past 24 hours.
In the past three months, Bitcoin price lost 20.53%; however, it added 33.13% YTD and 118.3% in 52 weeks. If the bears’ dominance continues in upcoming sessions, BTC could fall to the nearest support of $51,929.
SATS, Toncoin, and THORChain have lost approximately 11% in the past 24 hours, collectively topping the losers list. The intraday trading volume of the entire market grew more than 40%, reaching $70.7 Billion.
