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2020-06-02

Japan: changes in crypto taxes?

Finance Minister Taro Aso has suggested that he is unwilling to press for a 20% cut in the crypto currency tax rate in Japan because many households find it difficult to invest in digital assets.

Aso answered a question from a member of the Japan Restoration Association Shun Otokita at a meeting of the Financial Affairs Committee of the Chamber of Councils on June 2. 

Although Japan is the birthplace of crypto, there are still many companies and individuals in the country that keep their savings in the form of cash. The Finance Minister went on to say that it would be difficult to convince investors in Japan to put their cash into crypto so there was no need to adjust the tax rate.

In Japan, almost all crypto currency income - from trade, mining and loans - is classified as miscellaneous tax revenue, at a rate of up to 55%. However, the country taxes its inventories at a flat rate of 20%, which is what pro-crisis lawmakers are aiming for to include the digital currency. 

In line with changes in Japan's crypto currency legislation, which came into force on May 1, the Payment Services Act (PSA) requires that all references to "virtual currency" be replaced by "crypto assets".