[NEWS] Japanese government says it will reach a conclusion on regulations, including tax reform for crypto assets, by the end of June

On the 31st, Finance Minister Katsunobu Kato was asked about the establishment of regulations, including the tax system for crypto assets (virtual currencies), at the House of Representatives Budget Committee, and stated that "a conclusion will be reached by the end of June this year."

This was in response to a question from LDP member of the House of Representatives Akihisa Shiozaki. Shiozaki is in charge of web3 at the LDP Digital Society Promotion Headquarters.

Shiozaki mentioned the national stockpiling plan in the United States that utilizes crypto assets, including Bitcoin (BTC), and asked the Japanese government about its stance on crypto assets. At that time, he pointed out to Finance Minister Kato that "Japan's competitiveness is hindered by the fact that the crypto asset tax system is stricter than overseas," and asked whether "the crypto asset system is being reexamined in light of the ruling party's proposed tax reform outline for 2025," and "by when a conclusion will be reached."

Finance Minister Kato responded, "We are discussing the matter in line with the tax reform outline for 2025, and are considering the necessary legal arrangements." He then mentioned that "the Financial Services Agency will verify the system regarding crypto assets by June of this year." Minister Kato also emphasized that discussions are also underway on whether it is appropriate to develop crypto assets, which are legally treated as a means of payment, as investment targets. The ministry plans to continue to listen to a wide range of opinions through study sessions and other means.

The crypto asset tax system has been requested to be revised for many years by the industry. In December last year, just before the announcement of the tax reform outline for fiscal 2025, the LDP Policy Research Council approved an "urgent proposal to make crypto assets an asset that contributes to the national economy." This proposal includes making profits and losses from crypto asset transactions subject to separate reporting taxation.

Prime Minister Ishiba Shigeru also responded to Shiozaki's question. As the government's stance, Ishiba stated that "the healthy development of Web 3.0, including crypto assets, is extremely important." He expressed his belief that crypto assets will contribute to solving Japan's social problems and improving productivity. He then stated the importance of ensuring user protection and creating an environment for them.

Last year, in a response to a question in the Diet, Prime Minister Ishiba expressed a negative stance on tax reform for crypto asset ETFs and crypto assets. At that time, he also emphasized the need to improve investor protection, and this time he appears to have maintained his previous stance.

Reference: Budget Committee of the House of Representatives
Image: Shutterstock

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