Cryptocurrency lobbying groups in Japan plan to ask the government to ease corporate tax rules that are seen to be stunting growth of the local digital asset industry.
Two of the top bodies — the Japan Cryptoasset Business Association (JCBA) and the Japan Virtual and Crypto assets Exchange Association (JVCEA) — are preparing to submit a proposal to the Financial Services Agency (FSA) asking it to lower the cost for companies to issue and hold cryptocurrency tokens, according to an internal memo.
The groups will ask the government to stop taxing paper gains on cryptocurrency holdings if firms own them for purposes other than short-term trades, according to the memo. Currently, profit from such holdings, including unrealized gains, is subject to corporate tax at a rate of about 30%.