Japan’s Financial Services Agency proposes exempting cryptocurrencies from “unrealized gains” tax

ChainCatcher news, according to Cointelegraph, Japan’s main financial regulator, the Financial Services Agency (FSA), has decided to take over the supervision of cryptocurrencies and proposed changes to the crypto asset tax law. The FSA submitted the request on August 31, with the document proposing to exempt domestic companies from tax on year-end “unrealized gains” on cryptocurrencies. Under the laws of some countries, taxes are only required after crypto assets are sold for fiat currency, but in Japan they are taxed every year. The amendment proposed by the FSA is likely to take effect, and this reform will improve the domestic Web3 environment in Japan and promote the development of startups utilizing blockchain technology.