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PANews reported on September 4 that according to Coinpost, Japan’s Financial Services Agency (FSA) has submitted a request for legislative changes to the government to advance the taxation of domestic cryptocurrency companies. The FSA document states that the Ministry of Economy, Trade and Industry has also signed on to the reform. The new tax system on encrypted assets (virtual currency) requires revision of corporate tax. The government is being asked to continue its review of year-end mark-to-market taxes on “cryptoassets held by third parties,” which has been seen as an issue for some time. Tax reforms regarding crypto assets held by third parties were also mentioned in a tax reform request submitted to the government by the Japan Blockchain Association (JBA) in July.


Under Japan’s current legal system, if a company holds crypto assets, it must pay tax on unrealized gains (the increase in the value of its tokens) at the end of each fiscal year. In other countries, companies are only required to pay tax on the cryptocurrencies they sell or exchange for fiat currency.
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