News

Japan Unveils Tax Breaks for Long-Term Crypto Holdings

Japan is set to revolutionize its crypto tax policy and launch DCJPY, a digital yen, boosting its digital economy presence.
Published by
Japan Unveils Tax Breaks for Long-Term Crypto Holdings

Japan is preparing to introduce a new taxation regime for companies holding cryptocurrencies as long-term assets. This move is part of a broader strategy to position Japan as a competitive player in the rapidly evolving digital economy.

Advertisement

New Tax Exemption for Long-Term Crypto Holdings

Japan’s policymakers from the Liberal Democratic Party and their coalition partner, Komeito, are set to propose tax exemptions for unrealized gains on cryptocurrencies held by businesses. This change aims to encourage long-term investment in the digital asset space. Currently, Japanese companies are subject to corporate taxes based on the year-end valuation of their crypto assets.

The proposed reform, expected to be part of the fiscal 2024 tax plan, marks a significant departure from the existing tax structure. It reflects a growing recognition of digital assets’ unique nature and potential impact on the Japanese economy.

The proposed taxation reform is not just about easing the tax burden on Japanese companies. It also signals Japan’s intent to attract more liquidity from the global crypto market. This move comes as other Asian regions intensify their efforts to become leading crypto hubs. Additionally, Japan is considering changes to how foreign visitors are taxed on crypto purchases, although the specifics of this proposal remain unclear.

Advertisement

Japan’s First Yen-Pegged Digital Currency

Complementing its tax reforms, Japan is also advancing in the digital currency. GMO Aozora Net Bank, a Japanese internet bank, plans to issue a yen-pegged digital currency, DCJPY, by July 2024. Backed by bank deposits, DCJPY will leverage a blockchain network developed by DeCurret, a licensed cryptocurrency exchange. The telecommunication firm Internet Initiative Japan will initially use DCJPY to settle clean energy certificates. There are also discussions with other major Japanese companies, like Mitsubishi UFJ Financial Group Inc, to further explore the technology’s potential.

These developments highlight Japan’s strategic efforts to adapt to and shape the global digital economy. The proposed tax reforms and the introduction of a digital currency represent Japan’s commitment to fostering a robust, dynamic, and competitive financial technology sector. By recognizing the unique characteristics of digital assets and creating a favorable regulatory environment, Japan is positioning itself as a forward-thinking leader in the crypto and digital currency sector.

Read Also: Binance Announces Compensation Plan Post AEUR Stablecoin Surge

 

Advertisement

Share
Maxwell Mutuma

Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

ProShares Files for Index Crypto ETF Tracking Bitcoin, Ethereum, XRP, and Solana

Leading asset manager ProShares is seeking to establish a new crypto ETF tracking the CoinDesk…

October 22, 2025
  • News

Trump Says Meeting with China May Not Happen, Bitcoin Drops

U.S. President Donald Trump has cast doubts over his meeting with China's President Xi Jinping.…

October 21, 2025
  • News

The Great Rotation? Bitcoin Rises as Gold Sees Largest Daily Drop Since 2013

Experts have indicated that a rotation might be occurring with investors moving from gold to…

October 21, 2025
  • News

Crypto Czar David Sacks to Meet Senate Republicans In Bid To Advance Market Structure Bill

Crypto and AI Czar David Sacks is set to meet with Republican members of the…

October 21, 2025
  • News

Waller Floats ‘Payment Account’ Framework to Provide Crypto Firms Access To Fed’s Payment Rails

Federal Reserve Governor Chris Waller has floated the idea of a 'Payment account' framework that…

October 21, 2025
  • Altcoin News

Aster Outpaces Lighter in Perp DEX Rankings as Wintermute Buys the Dip After Previous Dump

Aster is regaining momentum in the perp DEX space as it outpaces Lightchain in 24-hour…

October 21, 2025