A Japanese lawmaker has proposed a number of changes to the current taxation regime in order to ease the burden for cryptocurrency users and encourage adoption of cryptocurrencies in the country.
In a meeting held earlier this month, Takeshi Fujimaki, a representative of political party Nippon Ishin, said that the country's tax system should not "crush the future" of digital currencies and blockchain technology, and recommended four amendments "to promote the wider [spread] of virtual currency into society."
Firstly, Takeshi suggested that there should be a separate tax rate of 20 percent on crypto gains instead of current up to 55-percent rate. This is because gains from cryptocurrency trades are not stable like salary income and there are chances of incurring losses. Accordingly, gains from cryptos should be taxed on par with other investment options in the country, such as stocks and mutual funds, he said.