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The Japanese finance minister could oppose a reduction in taxes on cryptocurrencies

June 2, 2020

The finance minister, Taro Aso proposed not to push for a lower tax rate on cryptocurrencies in Japan at a fixed 20% because many households find it difficult to invest in digital assets.

Aso answered a question from the member of the Japan Restoration Association, Shun Otokitaat a meeting of the House of Counselors’ Finance Committee on June 2.

“From JPY 1,900 billion [USD 17,600 millones] of the financial assets of households in Japan around JPY 900 trillion [USD 8,400 millones] They are now held as cash deposits and this is unusual, “said Aso.

The Japanese finance minister could oppose a reduction in taxes on cryptocurrenciesThe Japanese finance minister could oppose a reduction in taxes on cryptocurrencies

Although Japan is the birthplace of cryptocurrencies, The country still has many companies and people who keep their savings in cash. The finance minister said that It would be difficult to convince investors in Japan to put their money in cryptocurrenciesThe tax rate therefore does not have to be adjusted.

In Japan, almost all cryptocurrency related earningsfrom trade, mining and loans, are classified as other tax revenue, with a tax rate of up to 55%. However, the country taxes the shares at a fixed rate of 20%, which has pushed crypto-friendly legislators to include the digital currency.

Do all “stablecoins” have cryptocurrencies?

After changes to existing Japanese cryptocurrency legislation that came into force on May 1, The Payment Services Act (PSA) stipulates that all references to “virtual currencies” must be replaced by the term “crypto assets”..

Perhaps jokingly Aso said, “The word ‘crypto’ sounds a bit cloudy, so why don’t we use the Japanese word for stablecoin? […] Sounds more stable, doesn’t it? “

The Japanese term for crypto assets, Angō Shisan, uses Chinese characters “Stablecoin” is derived directly from English.

2x leverage limit for trading crypto margins

In conversation with members of the Japan Financial Services Agency (FSA), the country’s financial guardian, on the same committee Otokita asked if it was appropriate to double the leverage limit for margin trading on cryptocurrencies if there was not enough time to discuss with experts.. The leverage limit was lowered by 4 in the regulations that came into force on May 1st.

The agency said it had discussed the matter with cryptocurrency experts, including public comments.. The FSA has claimed that lowering the leverage limit is an appropriate response to the volatility of cryptocurrencies, citing consequences such as the March market crash.