Stake CEO: Japan should lower crypto tax

Japan should lower corporate taxes on cryptocurrencies to retain its base of entrepreneurs, one of the country’s leading crypto businessmen said on Monday (August 8).

“At least 20 or more” firms have moved abroad because of taxes, Sota Watanabe, chief executive of infrastructure firm Web3 Stake Technologies Pte.told Bloomberg News.

Watanabe moved his company to Singapore two years ago and said he hopes the Japanese government will change corporate tax in 2023. If that can happen, he would like to move Stake back to Japan.

He added that it may take a few more years for Japan to reduce income tax on cryptocurrency gains made by individual investors.

Read more: Today in Crypto: Japanese Crypto Companies Seek Tax Cuts

PYMNTS reported last month that crypto lobby groups in Japan were asking the government to ease the corporate tax on crypto.

The Japan Cryptoasset Business Association and the Japan Virtual and Cryptoassets Exchange Association proposed making it cheaper for companies to issue and hold crypto tokens, and are asking the government to stop taxing paper gains on crypto holdings if companies own them for reasons other than short-term reasons. acts.

Under the currency system, profits from crypto holdings, including unrealized gains, incur a corporate tax rate of around 30%, which can make it difficult for companies to hold onto digital coins once issued.

Learn more: Japan Adopts Legal Framework for Stablecoins

In June, Japan passed legislation that effectively defines stablecoins as digital currencies, becoming one of the first major world economies to create a legal framework for stablecoins.

The legislation states that stablecoins must be pegged to the yen or another legal tender and guarantee that holders can redeem them at face value. It also states that stablecoins can only be issued by licensed banks, registered money transfer agents and trust companies.

The new legislation will enter into force next year. Japan’s Financial Services Agency said its regulations governing stablecoin issuers are to be released in the coming months.