The proposal will be discussed in the Diet in the near future. The adoption of the law will put an end to the discrepancy in the approach to assets issued by third parties and assets that are not taxed at market value.
The government of Prime Minister Fumio Kishida is considering proposals from industry associations, the Japanese Business Association of Crypto Assets (JCBA) and the Japanese Blockchain Association, on how best to stimulate the development of the cryptocurrency industry.
Japan’s political leaders want to bring the country into the Web3 era without bureaucratic efforts.
According to the statement of the chairman of the JCBA Tax Review Committee, Gaku Saito, Web3 companies emigrate abroad due to responsibility for paying taxes on unrealized profits of their activities. Current legislation requires the sale of assets and does not allow the business to develop. The new law should correct this situation.