Two prominent Japan-based crypto advocacy groups reportedly rolled out a tax reform request, which urges for tax reductions targeting individual investors on crypto earnings. 

Specifically, The fiscal 2023 tax reform request reportedly tackled primary problems which in the advocacy groups’s belief, function as obstructions to the crypto adoption rate in the nation. 

The proposal reportedly concentrates primarily on the necessity for enhancement regarding the individual tax filing environment, the crucial nature of crypto assets in Japan’s Web3 strategy, as well as comparison with overseas crypto asset tax systems.

The proposal reportedly looks to achieve a separate 20% tax for individual crypto investors, with provisions to carry forward losses for three years from the following year. 

The proposal additionally urges to have the similar tax regime applied to the crypto derivatives market.

The 20% separate tax on crypto earnings with an exemption on unrealized gains would reportedly take a major burgen off of crypto investors operating in Japan, who have to deal with a maximum amount of 55% of taxes on their crypto investments at the moment. 

The tax reform proposal reportedly surfaced only a week following a report regarding an internal memo for crypto tax reforms slated to be submitted to Japan’s Financial Services Agency (FSA).

The Japan-based crypto groups have reportedly been putting in efforts to make sure that the crypto sector has significant growth in the nation, with a specific concentration on tax reforms. 

These crypto lobby groups share a belief that a high tax rate would pose a difficulty for businesses and individual investors to hold digital assets in Japan, in comparison to other countries that are more friendly towards crypto.

Crypto taxes were the focus of several governments around the globe this year, with many countries implementing high tax slabs while others moved to abolish or delay it due to a lack of clear regulations.