The Japan Blockchain Association (JBA) has asked the authorities to revise the taxation of cryptocurrencies – according to members of the organization, the current regulations slow down the development of the industry.

Representatives of a public organization emphasizes that it is necessary to revise taxation in order to spur the development of crypto projects. The organization asks for a flat tax rate on personal transactions in digital assets of up to 20% and the abolition of taxes on profits received from cryptocurrency transactions.

According to the Association of Cryptocurrency Exchanges of Japan, as of April 2023, about 6.8 million cryptocurrency accounts were opened in the country. And, JBA representatives emphasize, if the tax burden is reduced, the number of accounts will increase, and after them the volume of investments in digital assets.

The JBA is also asking for the elimination of the tax on unrealized profits on cryptocurrency assets, which is assessed at the end of each year. This will reduce the barrier to entry into the Web3 industry for companies – legal entities will not have to sell tokens in order to pay taxes on unrealized profits.

Representatives of the International Monetary Fund said that the taxation of the cryptocurrency industry in various countries is not optimal, and a large-scale refinement of tax systems is required.