Cryptocurrency in Japan: how the country is paving the way for ETFs and a fixed tax on Bitcoin
Listen, something very interesting is happening in Japan with crypto. A country that used to be quite cautious about digital assets is now changing course — and doing it in its own way, rigorously and systematically.
a#BinanceAlphaAlert , but with an eye on growth.
This is what the Japanese are doing. The Financial Services Agency of Japan (FSA) proposed to officially recognize cryptocurrencies as financial products, rather than just digital means of payment.
cryptocurrencies as financial products, instead of just digital means of payment. This is very important because then they will be under securities law, just like common stocks or bonds. This means it will be possible to launch bitcoin ETFs, i.e., funds that allow investing in bitcoin through the stock market, without worrying about wallets and brokers.
Even more interesting, they want to reduce taxes on income from cryptocurrencies. Now in Japan, there is a progressive scale: if you earned a lot from crypto, you can give more than half of your income to tax, up to 55%! But if the changes are accepted, the rate will become fixed — 20%, like on stock income. This is a huge incentive for investors and companies to operate in a legal field.
And this is not just a private initiative. These reforms are part of a larger plan for Japan's economic recovery, which they call 'new capitalism.' The government has officially included Web3, crypto, and NFTs among its priorities — not as toys for techies, but as real tools for regional development and attracting investments.
What is more important:
In 2023, Japan has already abolished the tax on unrealized profits from tokens issued by companies — that is, they took a step towards normalizing corporate ownership of crypto assets.
At the beginning of 2024, the first bitcoin ETF was approved in the United States, and Japan clearly does not want to fall behind.
Asian neighbors like Singapore and Hong Kong are also actively building crypto-friendly regimes — the competition for the status of regional crypto hub is growing.
It turns out that Japan does not just want to keep up with the trend, but to integrate into the global financial system of the future, where crypto is a full-fledged asset class, not exotic.
This approach can not only attract new investors but also retain those who are already working with cryptocurrencies but have moved to other countries due to strict regulations.
And so I have a question for you, my friend: if the largest economy in Asia decides to recognize crypto as a financial instrument and impose the same tax on it as on stocks, is this a sign that crypto is really maturing, or is it just a state attempt not to lose money on a new trend?
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