These new rates will drive the most wealthy cryptocurrency traders to move to another country. The National Tax agency has increased the price tag for crypto trading. As Bloomberg says, Japanese traders who work with cryptos will be obliged to pay up to 55% of their income to the government. We want to remind that taxes for the Forex trading in Japan usually equal to 20%.
Crypto earnings will be listed as "Miscellaneous income" and will be charged in the end of the tax season from Feb 16 to Mar 15.
Before, Japan was considered a crypto-friendly country, taking into consideration the legend about the Bitcoin founder Satoshi Nakamoto. Japan was the first nation that legally declared Bitcoin and Ethereum as payment forms. They signed the Virtual Currency Act (VCA) in June 2017. It caused the skyrocketing of these cryptocurrencies and the further strong flow of the fintech movement.
These facts confuse Japanese crypto traders . Bloomberg stated that some of them even made the decision to leave the country to save their fortune. Many people are going to move to the nearby Singapore which doesn’t charge so severe taxes. One of the possible causes for such tax growth is the fact that more than 40% of all the BTC trades were made against JPY.
Though Japan is going to increase the taxes, it is not the only country to do this. For example, cryptocurrency exchanges have already suffered from restrictions in India, South Korea, and the US. They have created special taxes for earning on the crypto market as well.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.