Japan is set to introduce a new taxation regime for companies that hold cryptocurrencies on their balance sheets for a long-term.
Japan‘s policymakers in the Liberal Democratic Party and ruling coalition partner Komeito are weighing to bring a new proposal that would exempt businesses from paying taxes on unrealized crypto gains. However, the change would only apply to those companies who are long-term holders.
According to a report from Nikkei Asia, companies in Japan are required to pay corporate taxes on their crypto holdings based on valuations at the end of each fiscal year. With the new changes, which are expected to be included in the ruling coalition’s fiscal 2024 tax reform plan, Japan seemingly wants to bring more liquidity from the market as other Asian regions have also doubled down on their efforts to become “crypto hubs.”
The report says that ruling coalition policymakers have also confirmed a proposal to change how foreign visitors are taxed for crypto purchases in Japan. However, details of this proposal are yet to be clear in 2024.
Meanwhile, Japan is set to launch its first yen-pegged digital currency for clean energy settlements in 2024 as the digitization of economies races ahead.
Japanese internet bank GMO Aozora Net Bank is said to issue the yen-pegged digital currency — backed by bank deposits — under the ticker DCJPY by July 2024. The turnover of DCJPY will be made using a blockchain network developed by DeCurret, a Japan-licensed cryptocurrency exchange acquired by Amber Group in early 2021.
Initially, it is planned that telecommunication firm Internet Initiative Japan will use the digital currency for settlement of clean energy certificates. However, DeCurret reportedly also discussed with other Japanese giants, such as Mitsubishi UFJ Financial Group Inc, to tap the technology.
Source : crypto.news / Dec 6, 2023