Following the rising popularity of digital assets globally, various nations have introduced laws concerning crypto assets. In some countries, cryptocurrencies are considered a taxable investment under the nation’s financial regime. In this context, Japan is gearing up for reforms in its national tax code.
Reasons for Revising the Tax Code
According to recent information, Japan’s Financial Services Agency (FSA) is preparing for tax code reforms. Earlier, the agency urged restructuring the tax codes and considering crypto assets similar to traditional financial assets. This move came after a request received by the agency in August, which seeks to include cryptocurrencies under the same tax regime as traditional financial assets at a lower rate.
Expert Opinions
Some market experts claim that the growing adoption of digital assets majorly fuels Japan’s move to entitle crypto to the tax regime for 2025. Crypto profits in Japan are currently taxed as miscellaneous income between 15% and 55%, as per crypto accountants TokenTax. Some analysts believe the move to revise the tax codes came following the rising tax revenue from crypto in other nations. It is crucial to note that several nations are revising the tax slabs to collect more taxes from cryptocurrency profits.
Crypto Market Price Update
The fear and greed index by CoinMarketCap is at 34, reflecting bear dominance and huge selling pressure. At the time of publishing, the cryptocurrency market capitalization was $1.98 trillion with an intraday decline of 4.02% and below the 20, 50, 100, and 200 days EMA. Since August 26, 2024, till now, constant selling pressure has been observed in Bitcoin volume; at the time of writing, it was trading at $56,515 with a decline of 1.74% in the past 24 hours. In the past three months, Bitcoin price lost 20.53%; however, it added 33.13% YTD and 118.3% in 52 weeks. If the bears’ dominance continues in upcoming sessions, BTC could fall to the nearest support of $51,929. SATS, Toncoin, and THORChain have lost approximately 11% in the past 24 hours, collectively topping the losers list. The intraday trading volume of the entire market grew more than 40%, reaching $70.7 billion.
Japan plans to revise its tax legislation for cryptocurrencies by 2025, as part of a global trend in regulating and taxing digital assets. This may impact the market and lead to further changes in the financial system.
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