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Japan Exempts Cryptocurrency Issuers From 30% Tax on Unrealized Gains

Cryptocurrency issuers in Japan are now exempt from paying a 30% corporate tax on unrealized gains on tokens under a June 20 revision to the law by the National Tax Agency.

Fast facts

  • The tax change comes as Japanese authorities push initiatives to promote its blockchain and crypto sector.

  • Prime Minister Fumio Kishida supports digital finance and blockchain adoption in Japan to reinvigorate the economy in what he has more broadly called “new capitalism.”

  • However, cryptocurrency investors are still subject to a maximum 55% income tax on crypto-related earnings over 200,000 Japanese yen (US$1,400) which is classified as “miscellaneous income.”

  • Japan Virtual & Crypto Assets Exchange Association, the country’s lobby group for the crypto industry, is requesting regulators to also relax crypto margin trading limits, Bloomberg reported last week.

  • Mitsubishi UFJ Financial Group Inc. (MUFG), the largest bank in Japan, is also reportedly in talks with various global cryptocurrency companies about issuing stablecoins.

  • Earlier this month, MUFG announced details on its Progmat Coin blockchain-based platform to enable local banks to launch stablecoins and digital assets.

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