Japan is taking steps toward a more structured approach to cryptocurrency regulation, highlighting tax reductions and new trading rules.
New Tax Regime for Cryptocurrencies
The Japanese government, led by the Liberal Democratic Party, is proposing to reduce the tax on cryptocurrency profits to 20%. This marks a significant shift as the current tax rate can go up to 55%.
Tightening Insider Trading Rules
In addition to tax cuts, the authorities intend to introduce rules similar to those on the stock market to prevent unfair practices in the crypto industry. These measures aim to ensure transparency and fair play in the markets.
Influence of Major Companies on the Crypto Market
Metaplanet, the largest corporate holder of Bitcoin in Japan, has been included in the FTSE Japan Index. Metaplanet's CEO, Simon Gerovich, noted that the company recently purchased $11.7 million worth of Bitcoin, raising its total crypto holdings to $2 billion.
Japan is preparing for significant shifts in its crypto policy. With plans to ease taxes, tighten regulations, and expand corporate investment into Bitcoin, the country is setting the stage for a more competitive and structured market for digital assets.
