The Japan Association of New Economy (JANE) wants the Japanese Financial Services Agency (FSA) to reduce the current tax rate for crypto trading income. According to an official JANE document published on February 14, the current taxation method discourages people from disclosing their income.
Japan currently taxes crypto income in compliance with general taxation at 55 percent. The Japan Association of New Economy, led by Hiroshi Mikitani, the CEO of Rakuten, wants to impose progressive taxation on crypto gains intends to reduce the tax to 20 percent. Japan applies the same rate to stocks and forex markets in the country.
A request was also put in with the FSA to remove all tax from crypto-to-crypto transactions. The current taxation system stifles the growth of the entire crypto industry, slowing innovation and encouraging a grey market, JANE said in their proposal.