Japan’s strict approach to crypto taxes is to keep both buyers and sellers under control. A survey of 1,500 adults in April found that 13% currently own Bitcoin, Ethereum or other crypto assets. Many say that Tokyo is the only one who is ready to jump in if it eases tax burdens.
A majority of back flat tax
According to the Japan Blockchain Association, 84% of the 191 people who already hold crypto would buy more if their profits were faced with a flat 20% collection.
Also, 12% of the 1,309 non-owners said they would start buying Bitcoin or other crypto under the same rules. This is a major shift from today’s system where codes are landing under the “other revenue” of tax returns.
Source: JBA
Currently, profits from Bitcoin or crypto can be taxed at a rate of up to 55%, depending on the bracket. This is much higher than the 10-20% flat rate that applies to stocks in many other countries.
Based on the report, JBA is pushing for crypto to move to the same capital gains category, claiming to increase the volume of trading on local exchanges.
Research shows the appeal of simple rules
Three-quarters of survey participants said they wanted to withhold taxes from the source when selling Bitcoin, rather than submitting individual documents.
JBA asked Tokyo to choose to pay traders at the point of sale or submit annual returns. Its flexibility can relieve headaches for both hobby investors and strengths.
BTCUSD trading at $118,826 on the 24-hour chart: TradingView
The polls took a deeper look at why some people don’t touch codes. Only 8% criticized the high taxes, while 61% said they didn’t feel they knew enough about digital coins.
The sample was 60% males and 40% females, with an average age of 38. Students accounted for 5.3% of the group, with 213 people saying they were unemployed.
Image: Canva
FSA considers wider reforms
Financial Services institutions are weighing proposals to shift Bitcoin under the Financial Product Exchange Act, according to reports from financial regulators.
If approved, it could formally treat digital assets as financial instruments and pave the way for a unified 20% tax as early as next year.
Exchanges like Bitflyer have already confirmed that Ethereum trading accounts for almost half of its volume. Changes could restructure the Japanese crypto market. This makes trading easier and allows more people to fold.
Travel+Leisure special images, TradingView chart
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