JBA Proposes 'Five Key Amendments' for Cryptocurrency Tax Reform, Including a 20% Separate Tax Declaration

On July 18, the Japan Blockchain Association (JBA) submitted a 'Proposal for Tax Reform on Crypto Assets' to the government. A press conference was held at 3 PM the same day, featuring Yuzo Kano, the CEO, and Hirota Iwasaki, the head of the tax committee. Amid intensifying discussions on transitioning to the Financial Instruments and Exchange Act, the JBA presented the latest version of their ongoing tax reform requests since 2022. The five key tax reform requests submitted by JBA include: the introduction of separate taxation and carryover of losses, the establishment of tax measures related to inheritance, deferral of taxes during exchanges of crypto assets, the establishment of tax measures when donating crypto assets, and the continued review of specific transfer-restricted crypto assets. The JBA is advocating for a 20% separate taxation, equivalent to that of stocks...