Japan’s FSA, the main authority for financial regulation, has taken a bold step to reform the tax rules for digital assets.
The agency sent its proposal to the government on Aug. 31, as reported by local media.
The most striking part of the 16-page document is an attempt to exempt local companies from paying taxes on crypto profits that are not realized by the end of the year.
Unlike some other countries, where taxes are due only when crypto is converted to fiat, Japan imposes taxes on a yearly basis.
The FSA’s proposal has a good chance of being approved, since it claims to have the backing of the Ministry of Economy, Trade and Industry.