Government and Ruling Party to Consider Separate Taxation for Crypto Assets, Reports NHK

NHK reported on the 1st that the government and ruling party are coordinating to treat income from crypto asset transactions similarly to stocks, under a separate taxation system. Under the current system, profits from crypto asset (cryptocurrency) investments are taxed as 'miscellaneous income' under the inclusive taxation system, with tax rates up to 55% (including resident tax) depending on the income. If separate taxation is introduced, a uniform tax rate of 20% is expected. In terms of regulatory framework for crypto assets, by the end of November, the Financial Services Agency's Financial System Council compiled a draft report indicating a direction to consolidate the regulatory framework from the Funds Settlement Act to the Financial Instruments and Exchange Act (FIEA), clarifying the positioning as investment targets, and...