The Japanese Government has recently published a white paper empowering the country to move forward in its ambition to become the world leading economic power in the Bitcoin and cryptocurrency industry. The document was created to offer solutions to the current taxation laws, accounting and legal frameworks that are obstructing the growth of Web3 companies, setting the benchmark for international best practices.

The paper seeks to create a growing environment for cryptocurrencies, in face of the previously high tax rates that were leading companies to set up business in other countries. The document details the need for tax reforms that, for example, include incentives for companies involved in tokens, allowing for self-assessment since investors can be accountable for their losses for a period of three years and the tax is only imposed when assets are exchanged from one cryptocurrency to another.

The document also marks an important step towards a higher degree of security to protect investors in the trading schemes, taking into account the urgent need of accounting standards that have been a major problem for Web3 firms, as they have been unable to locate experienced auditors. Therefore, the document encourages the Japanese ministries and departments to cooperate with the Japan Institute of Certified Public Accountants. It also proposes creating a DAO law and adjusting the regulations that are following the national law “Companies” and “Financial Instruments and Exchanges Acts”.

The news has been welcomed by the cryptocurrency community and it shows Japan is leaving its mark in the world-wide blockchain and cryptocurrency revolution, by providing a secure base where investments can be made safely and legitimately, as the government is encouraging innovation, entrepreneurship and working out clear rules and regulations for crypto businesses.



Other News from Today