Japan Blockchain Association Calls for Crypto Tax Revision: Will 2025 Bring Change?

Advocates of the crypto industry in Japan are demanding a revision of the national tax regime for digital assets. For years, crypto advocates, including the Japan Blockchain Association, have been pushing for tax reductions. Now, the Japan Blockchain Association (JBA), a non-profit organization, has reportedly requested the country's government revise the tax system to accommodate crypto. JBA claimed that its review highlights the need for significant adjustments to foster innovation and attract web3 businesses.

The Japan Blockchain Association proposes significant tax reforms for 2025. This petition seeks reforms to the tax system for crypto assets, which represents the largest barrier for corporations looking to operate web3 businesses in Japan, and impedes Japanese economic growth. Key proposals include changes to mining income tax, corporate tax base, and expansion of non-taxable inheritance related to crypto assets.

What specific changes are being proposed? The JBA is advocating for revisions that would streamline the taxation process for crypto mining, making it more appealing for miners to operate within Japan. Furthermore, the proposed changes to the corporate tax base aim to alleviate the burden on businesses holding crypto assets. The expansion of non-taxable inheritance could encourage greater adoption and investment in digital assets within the country.

The Japanese financial regulator, the FSA, has rolled out some initial measures, but the JBA believes a more comprehensive overhaul is necessary. The Japan Blockchain Association’s request for a tax revision signals a renewed push for a more crypto-friendly regulatory environment in Japan. Will the government listen and implement these vital changes in time for 2025? The crypto community awaits the decision with bated breath.