Japan Pushing To Become More Crypto Friendly
Two crypto advocacy groups in Japan have come together and released a tax reform request to lower taxes for individuals on crypto profits. The 2023 tax reform request proposes a 20% tax for individual investors and includes provisions to carry losses for three years. Japan currently taxes crypto as miscellaneous income which can be taxed up to 55%.
Japan is also bringing back Bitcoin ATMs which have been in Tokyo as early as 2014 but were taken out of circulation in the “crypto winter” of 2018. Japanese crypto exchange firm Gaia Co. announced that they would soon roll out Bitcoin ATMs (BTMs) with support for BTC (Bitcoin), ETH (Ethereum), BCH (Bitcoin Cash), and LTC (Litecoin).
Gaia plans to have 50 BTMs across the country within the next year with further plans to expand to 130 BTMs within three years. The machines will be fitted with Anti-Money Laundering compliance measures. These measures include a withdrawal maximum of 100,000 Yen ($747 USD) per transaction and a maximum withdrawal cap of 300,000 yen ($2,243 USD) per day.
Read more on the return of BTMs in Japan on CoinTelegraph.
The South Korean government has been going back and forth on a crypto tax bill that was first announced in January 2021. The bill calls for a 20% tax on crypto gains over 2.5 million won (around $1900 USD) within a year. The bill was met with heavy resistance and was successfully delayed. There was even a petition called for Korea’s financial services regulator to resign. Last month, officials announced new tax reform plans and deferred the crypto tax policy to 2025.
Indian Crypto exchange's trading volume have plunged by 90-95% , 3 months after new crypto laws became applicable.
— Crypto India 🔑 (@CryptooIndia) July 4, 2022
Based on current volumes - Exchanges are only able to generate trading fee revenue of $1000 to $3000 Max.
Bitbns seems to be still doing well.
Tough times ahead. pic.twitter.com/KNDbea9BCn
India introduced harsh crypto tax regulations that took effect April 1 and July 1. The law introduced earlier called for a 30% capital gains tax with no option to write off losses. The newer law imposes a 1% levy on all crypto transactions.
India is the country with the most cryptocurrency users/holders with 100 million people; the US comes in second at 27 million. The new 1% tax on all crypto transactions caused Indian trading volumes to drop heavily. On July 5th, just a few days after the introduction of the tax, one exchange fell over 90% in volume and most were down on average 56% according to CoinGecko.
