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Japan's Finance Minister has spoken out against reducing the tax on cryptocurrency income

Japan’s Finance Minister has spoken out against reducing the tax on cryptocurrency income

Japanese Finance Minister Taro ASO does not consider it necessary to reduce the tax on cryptocurrency income in the country and equate it with the tax on income from trading shares.

Currently, income received from operations with cryptocurrencies, including trading, mining and lending, is classified in Japan as “other income” and is taxed up to 55%. At the same time, income from trading securities in the country is taxed at a uniform rate of 20%.

According to Taro ASO, the population of the country is too tied to cash, and even with a reduction in the tax on cryptocurrencies will not start investing in digital assets:

“Households have financial assets worth $17.6 billion, with $8.4 billion in cash deposits. This situation is not normal, ” he said.

Taro ASO made his statement in response to a question from the representative of the Japanese Dream revival Party from Okita (Shun Otokita). Ot Akita believes that the taxation of transactions with cryptocurrencies should be the same as transactions with securities.

Earlier, Akita sent a request to the financial services Agency of Japan (FSA) regarding the legitimacy of reducing the maximum leverage for margin trading in cryptocurrencies from 4x to 2x.

Recall that the new laws regulating cryptocurrencies in Japan – the payment services Act (PSA) and the financial instruments and exchanges Act (FIEA) – came into force on may 1, 2020.