During Kishida’s presidency, there were certain changes in the Japanese cryptocurrency sector, including Mt. Gox’s decision to begin paying back its debts and the introduction of crypto ATMs. The Japan Crypto-Asset Business Association and Japan Crypto-Asset Exchange Association, two crypto advocacy groups, proposed a 20% tax on crypto profits for individual investors in August (before they were changed to 55%).
In 2021, Fumio Kishida will lead Japan’s government. He has promised to make efforts to encourage Web3 services, including those dealing with nonfungible tokens and the metaverse.
In an Oct. 3 speech before Japan’s National Diet, Kishida said the government’s digital transformation investment has already included issuing NFTs to local authorities using digital technology to solve challenges in their jurisdictions, and he hinted at digitizing national identity cards. In addition, the prime minister said the cabinet would “promote efforts to expand the use of Web 3.0 services that utilize the metaverse and NFTs.”
Kishida said Japan would invest in semiconductor manufacturing and other technological projects as part of a joint US-Japan project. Former prime minister Yoshihide Suga, who took office in October 2021, supported Bitcoin taxation.
Japan’s crypto self-regulation ‘experiment’ isn’t working.
During Kishida’s time in office, crypto users in Japan may have seen a variety of developments in the sector, from Mt. Gox moving forward on repayment procedures after years of legal delays and the reintroduction of crypto ATMs in the country. According to two of Japan’s crypto advocacy groups, the Japan Crypto-Asset Business Association and the Japan Crypto-Asset Exchange Association, a 20% separate tax on crypto earnings should be imposed on individual investors to help pay for the country’s increased public services — currently, crypto tax rates may range from 55% to 75%.