Japanese finance minister Taro Aso commented on the cryptocurrency tax. He answered the question asked by Japan Restoration Association member Shuna Otokita during the meeting of the Financial Affairs Committee that took place on June 2.
Japan, cryptocurrencies and taxes
“Out of 1,900 trillion yen [17,6 mld USD] financial assets owned by households in Japan, around 900 trillion yen [8,4 mld USD] is currently held as cash deposits, which is abnormal “
– Aso said.
Japan is a strange country. On the one hand, it is famous for new technologies and the fact that in 2017 it recognized BTC as a means of payment, on the other, there are many people who keep savings in cash. This is due to the fact that we are dealing with an aging society and seniors are not open to mobile payments.
The finance minister continued that today it would be difficult to convince a large proportion of investors in Japan to cryptocurrency at all, which means that there is no need to adjust the current tax rate.
Why is this so important? In Japan, almost all cryptocurrency-related revenues – from trade, mining or loans – are classified as miscellaneous income, so they are subject to a rate of up to 55 percent. However, the country taxes the gains on assets at a rate of 20 percent. Therefore, BTC supporters would like the government to revise the rules on accounting for cryptocurrency profits.
During the meeting, Otokita, addressing members of the Japanese Financial Services Agency (FSA) – the national financial regulator – also asked whether it is appropriate to limit the leverage limit on cryptocurrency trading to 2x. He noted that when the regulations were being made, there was not enough time for discussion with experts. The leverage limit has been lowered from 4x. The new regulations came into force on May 1.
The agency said it spoke to the cryptocurrency experts and experts on the FX market on this topic and reportedly also took into account comments from these environments. The FSA maintains that the lowering of the leverage ceiling was a sufficiently high volatility in cryptocurrency exchange rates. They cited, for example, a fall in March.