Today in Crypto: Japanese Crypto Seeks Tax Cuts
Japanese crypto lobby groups will ask the government to ease corporate tax rules that they say are hindering growth for the industry, Bloomberg reported on Wednesday (July 27).
The Japan Cryptoasset Business Association and the Japan Virtual and Cryptoassets Exchange Association have a proposal to make it cheaper for companies to issue and hold crypto tokens.
They will send it to the country’s Financial Services Agency, asking the government to stop taxing paper gains on crypto holdings if firms own them for reasons other than short-term trading.
As it stands, the profits from crypto holdings, including unrealized gains, incur a corporate tax rate of around 30%, which can make it costly for companies to hold digital coins once they are issued.
The requests from the crypto industry, the report said, will end up testing how committed Prime Minister Fumio Kishida’s government is to developing Web3 in Japan. This comes as high taxes have driven some Japanese companies to relocate to Singapore.
In other news, the US Securities and Exchange Commission (SEC) is looking into digital currencies listed on Coinbase, raising concerns that there could be a “major crackdown,” Bloomberg reported.
It comes as the SEC has been investigating whether Coinbase evaded regulations by offering trading for certain currencies.
Digital assets have had a rough week, and concerns that the SEC is looking into crypto trading have only made things worse.
The report said anxiety was only heightened when the SEC identified some crypto assets it said were securities as part of an insider trading case. The agency, which says nine tokens fall under its jurisdiction, has drawn criticism from the Commodity Futures Trading Commission, which also oversees crypto in the US
An SEC lawsuit filed July 21 against a former Coinbase executive accuses him and two others of insider trading. Federal prosecutors in Manhattan have also charged the three men.
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