Today in Crypto: Japanese Crypto Seeks Tax Cuts

Japanese crypto lobbying groups will ask the government to ease corporate tax rules they say are holding back industry growth, Bloomberg reported on Wednesday (July 27).

The Japan Cryptoasset Business Association and the Japan Virtual and Cryptoassets Exchange Association have a proposal to make it cheaper for businesses to issue and hold crypto tokens.

They will submit it to the country’s Financial Services Agency, asking the government to stop taxing paper earnings on crypto assets if companies own them for reasons other than short-term transactions.

Currently, profits from crypto assets, including unrealized gains, incur a corporate tax of around 30%, which can make it costly for businesses to hold digital coins once they are issued.

Crypto industry demands, according to the report, will eventually test Prime Minister Fumio Kishida’s government’s commitment to developing Web3 in Japan. This comes as high taxes have prompted some Japanese companies to set up shop in Singapore.

In other news, the U.S. Securities and Exchange Commission (SEC) is looking into digital currencies listed on Coinbase, raising fears of a “major crackdown” to come, Bloomberg reported.

This comes as the SEC investigated whether Coinbase evaded regulations by offering exchanges for certain currencies.

Digital assets had a tough week, and fears of the SEC looking into crypto trading only made matters worse.

The report says the anxiety was only heightened when the SEC identified certain crypto assets it believed were securities, as part of an insider trading case. The agency claiming nine tokens fall under its purview has drawn criticism from the Commodity Futures Trading Commission, which also oversees crypto in the United States.

An SEC lawsuit filed July 21 against a former Coinbase official accuses him and two others of insider trading. Manhattan federal prosecutors have also charged the three men.

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