Tangible taxes up to 50% in Japan scare away investors and companies from the field of digital assets. According to Mr. Watangbe, a representative of Web3 Stake Technologies, high taxes have already alienated more than 20 crypto companies. At the same time, Watangbe, without specifying which companies are meant, expressed hope for the formation of a more favorable business climate for companies from the crypto sphere closer to 2023.
Taxation of crypto income in Japan is applied on the principle of mixed income when a certain amount of income is reached, the amount of taxes can reach up to 50% of the benefits received.
In the spring, Japanese Prime Minister Kishida announced plans to change a number of financial laws, including regarding the sphere of cryptocurrencies and digital assets. And already at the beginning of the summer of this year, the Japanese parliament adopted a law on the mandatory binding of stablecoins to the local yen currency.
A similar situation of strict political regulation of business was previously faced by private investors and crypto companies from India, who were forced to move their business to the UAE and Singapore in search of more favorable conditions for doing business.