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Takeshi Fujimaki, a member of Japan's House of Councilors and interim chairman of Japan's Restoration Committee, said the country's tax system is slowing the development and adoption of cryptocurrency and blockchain technology. The Financial Supervisory Authority proposes tax reforms that allow cryptography enthusiasts who spend, negotiate or invest their investments to do so without binding tax legislation.
Fujimaki says:
"Today, I received an explanation of the Financial Supervisory Authority submission bill. One is an invoice related to cryptographic badets. I asked questions about "the bill from the point of view of customer protection and the promotion of innovation". It is the tax system that prevents the development of cryptocurrency and blockchain.
If you want to promote badets and cryptographic blocks chains, the FSA also addresses a request to the tax administration. "
Reported by the local press point CoinPost, the proposed tax system recognizes that there are different cases of use for crypto-currencies generating different types of transactions. Everyone should be taxed separately and accordingly.
Income
If someone receives his salary in Bitcoin or another cryptocurrency, he must be fully taxed.
Commercial gain
If someone's harvesting a commercial gain, he should not be totally taxed.
Business losses
The volatility of crypto trading allows traders to suffer losses for years. Deductions for deferred losses should apply as for other badets such as stocks and mutual funds.
Currently in Japan, a cryptographic investor is not allowed to carry forward operating losses to the next year. So there could be a scenario in which an operator suffers a loss this year, followed by a fair profit the following year, but the overall result is still negative – and the operator must pay taxes .
Tax exemption for crypto to crypto transactions
Calculating the profits and losses for every crypto crypto transaction is extremely complicated and tedious. This alone discourages people from participating in the cryptocurrency market and slows liquidity. To increase the volume of transactions and stimulate the market, transactions between crypto-currencies should be tax-free.
Make payments for small amounts tax-free
The crypto-currency settlement in the real world is where innovators and developers expect a mbadive adoption. For this to happen, small cryptographic transactions should be tax exempt, which would allow cryptographic payments to grow in the real world.
Currently, the yen is the second most traded national currency for Bitcoin, accounting for 43.31% of the market. The US dollar ranks first at 44.23% of the market, according to data compiled by Coinhills.
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Disclaimer: Daily Hodl's advice is not investment advice. Investors should exercise due diligence before making high-risk investments in Bitcoin, Cryptocurrency or digital badets. Please note that your transfers and transactions are at your own risk and that any loss you may suffer is your responsibility The Daily Hodl does not recommend the purchase or sale of crypto-currencies or badets digital, and the Daily Hodl is not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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