According to BlockBeats, on October 23rd, according to the Financial Times, the approval of spot cryptocurrency ETFs in the United States, Hong Kong, and other markets highlights the conservative and distinctly different attitude taken by Japanese regulators.
Japan has always positioned itself as a digital asset friendly country, as part of its broader goal to become a larger asset management center. However, at the policy level, Japan still hesitates to lift restrictions, remove tax and regulatory barriers, and promote the widespread adoption of cryptocurrencies. Although some Japanese companies are preparing to launch digital asset products, tax and regulatory restrictions remain the main obstacles.
In Japan, general cryptocurrency investment income is considered miscellaneous income, with a maximum tax rate of 55%. However, ETFs are considered capital gains when traded in the securities market, so the tax rate is lower at around 20%, providing investors with a more attractive option to diversify their investment portfolios through digital assets.
Spot cryptocurrency ETFs will also enjoy tax benefits such as loss carryover. But according to Keisuke Kimura, Vice President of the Japan Crypto Asset Business Association and former financial advisor to SMBC Nikko Securities, many changes are needed to get regulatory agencies to take action and introduce these potential tax benefits.
