High Taxation in Japan is Driving Crypto Businesses Away, Entrepreneur Says
Brian Njuguna Aug 09, 2022 02:20
To prevent entrepreneurs from leaving the nation, Japan should minimize corporate taxes on crypto businesses, according to Sota Watanabe, the CEO of Stake Technologies Pte.
To prevent entrepreneurs from leaving the nation, Japan should minimize corporate taxes on crypto businesses, according to Sota Watanabe, the CEO of Web3 infrastructure company Stake Technologies Pte.
The high-profile crypto businessman pointed out:
“At least 20 or more firms have opted to establish their crypto business abroad rather than Japan because of the high levy.”
After moving his company to Singapore in 2020, Watanabe noted he hoped that the Japanese government would revamp the corporate levy starting next year. He acknowledged that he would return the company to his home country if this happened.
Watanabe added:
“It may take a few more years before Japan lowers income taxes for cryptocurrency gains made by individual investors.”
Crypto lobbying groups have been pushing the Japanese government to tone down corporate tax rules because they have been denting the digital asset sector.
Therefore, Watanabe joins a growing list of entities asking the Japanese administration to rethink the corporate tax system because it stunts crypto growth in the nation.
Meanwhile, Japanese lawmakers recently revealed plans to amend the Act on Punishment of Organized Crimes and Control of Proceeds of Crime (1999) so that courts and law enforcement agencies would be granted the authority to seize cryptocurrencies linked to criminal activities.
Nevertheless, it was indicated that the Ministry of Justice was to hold intensive discussions with the Legislative council to unlock various stalemates like how the private keys to a particular cryptocurrency would be obtained when enforcing the seizure.
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