In order to make it easier for cryptocurrency-related companies to do business in Japan, Japan's National Taxation Agency has announced that unrealized earnings from cryptocurrencies issued by companies themselves will no longer be taxed.
Under current Japanese law, if a company owned cryptocurrencies, it was also taxed on unrealized earnings at the end of the period.
It has long been noted that this rule places a burden on companies and hinders innovation in cryptocurrencies and blockchains. Because of this Japanese law, some companies have chosen to do business abroad. With this revision, the rules for issuing virtual currencies have been officially relaxed.
While there are still issues that need to be addressed to make it easier for crypto-related companies to do business in Japan, this represents a step forward in improving the business environment.
There are also various rules to benefit from taxation exemption.
With this notification from the National Tax Administration, many voices of joy were heard from the Japanese community and those dealing with cryptocurrencies. Sota Watanabe, founder of Aster Network (ASTR), who is actively calling for this rule to be revised, commented:
“For now, people who want to do something like Aster after us can now do so without having to leave the country. We want to continue constructive talks with politicians and officials.”
*Not investment advice.
