A leading Japanese business association has asked the country’s Financial Services Agency (FSA) to lower the rate at which taxes are assessed for cryptocurrency trading. The request from the Japan Association of New Economy (JANE) asked the regulator to use progressive rather than general taxation, according to a February 14 report from Cointelegraph Japan.
Under the current rules, crypto trading income is reportedly taxes at a rate of 55 percent. That’s more than double the 20% tax rate used for foreign exchange and stock trading in Japan. JANE’s request would simply bring the tax rate used for crypto into line with other types of investment trading.
In addition, JANE has asked the FSA to forsake taxation on transactions involving an exchange of one cryptocurrency for another. The proposal offers several other regulatory recommendations, all of which are designed to reduce the chances that regulators will stifle innovation by adopting too many strict regulations.
Other recommendations include asking the FSA to clarify the scope of its regulations, and bring new clarity to issues like ICOs, derivatives trading, and cryptocurrency custody concerns.