The government of Japan hinted a lot of plans earlier this year, all showing its initiative to ease the process of taxing crypto investments – all in order to refrain from the impractical taxation frameworks that negatively affect the local market. In today’s crypto news, however, we have a new framework set up by Japan’s government, aiming at reducing the tax on Bitcoin and other cryptocurrency investments.
In fact, a committee of tax experts encouraged the authorities to simplify the complex process of disclosing taxable amounts that occur in investing in the crypto market. Before this, a local analyst said:
“If the rapid growth of the cryptocurrency sector in late 2017 is considered, 331 is a number that is simply too low to be true. A large portion of cryptocurrency investors probably did not declare their earnings to the government.”
Takeshi Fujimaki, who is a Japanese congressman and lawmaker, proposed four major changes to the taxation policies surrounding the digital asset market with the objective of revitalizing the market.
In order to reduce the burden on investors and in consideration of the characteristics of the cryptocurrency market, Fujimaki proposed the following changes:
- Reduction of crypto tax gains from up to 55 percent to a fixed 20 percent rate on gains.
- Carry forward losses across quarters and years, until the cryptocurrencies are cashed out
- No taxes in trading crypto-to-crypto
- No tax on small cryptocurrency payments
All of these proposed changes are about to affect the market in a positive way and allow investors to trade in a fairer environment.
“In order to increase the volume of transactions between virtual currencies and to revitalize the virtual currency market, trading between virtual currencies should be tax exempt,” Fujimaki concluded.
Crypto Exchanges In Bulgaria Are Investigated: Government Asks For 10% On Profits
Accounts Of The First Digital Bank In India Closed After Involving In Crypto-Related Activity
“I've been a user of DBS' Digibank for a year. Although I regularly used Kotak Mahindra Bank for my cryptocurrency transactions, I used Digibank only 7 times throughout the year. On January 14th, I received multiple messages from my twitter [sic] followers regarding an account closure notice by Digibank. I checked my mailbox and found the mail myself.”However, Digibank stated:
“Reserve Bank of India through their public notices have warned/advised the public regarding risks associated with virtual currencies. We reiterated the same vide our emails dated 4th May 2018 and 2nd Aug 2019, cautioning our account holders [against] the risks associated [...] and that DBS accounts and debit cards should not be used for their purchase or any kind of dealings.”Many other users responded to the allegations that not only Digibank but many other banks are doing the same as well.
BitMex Pulls The Plug On Trading Accounts In Quebec And The US
‘’The development comes at the same time as the Hong Kong-based company notifying users in North Korea, Iran, Syria, Cuba, Sudan and Sevastopol in the Crimea since the fourth quarter of 2018 against holding positions or trading on BitMEX, as these are restricted jurisdictions.’’It seems like BitMex only wants to cover its back and provide protection for their users against regulatory crackdowns. However, the exchange decided to pull the plug on the trading accounts after the Canadian regulatory body has announced the BitMex is operating illegally in Canada:
‘’BitMEX is not registered with the AMF and is therefore not authorized to have activities in the province of Quebec. We informed this company that its activities were illegal.’’There is still no explanation why the exchange decided to shut down the trading accounts in the US. Many believe that the exchange does so because of the same strict crypto regulations. We are still expecting a comment from BitMex since it seems like there is almost a billion dollars worth of crypto still on the platform.
The Revenue Agency Of Bulgaria Will Investigate Crypto-Selling Companies
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