Token issuers in Japan exempt from 30% crypto tax on paper gains

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News of the Day

Token issuers in Japan exempt from 30% crypto tax on paper gains

Why it matters:

• The exemption applies to tokens issued through initial coin offerings (ICOs) and security token offerings (STOs). These tokens will now be treated similarly to traditional securities, which are also exempt from the crypto tax.
• This move is expected to encourage more token issuers to enter the Japanese market and could lead to increased investment in the country's crypto industry. It also brings Japan's tax policy in line with other major economies, such as the United States and Singapore, which have similar tax exemptions for securities.
• The Japanese government has been taking steps to regulate the crypto industry in recent years, with the introduction of a licensing system for crypto exchanges in 2017 and the establishment of a self-regulatory body for the industry in 2018. This latest move is seen as another step towards creating a more favorable regulatory environment for crypto businesses in Japan.

Crypto Daily Spotlight

SEC Approves First Leveraged Bitcoin Futures ETF

Brief introduction: A cryptocurrency exchange-traded fund (ETF) is a financial product that allows investors to gain exposure to cryptocurrencies like Bitcoin and Ethereum without having to buy and store the underlying assets themselves.

Why it matters:

• This approval is a significant milestone for the crypto industry, as it marks the first time that a leveraged Bitcoin ETF has been approved by the SEC. It is also seen as a sign of growing acceptance of cryptocurrencies by US regulators, who have historically been cautious about approving crypto-related financial products.
• The approval of this ETF is expected to increase institutional investment in Bitcoin and could lead to increased price volatility in the short term. It also brings Bitcoin one step closer to being recognized as a legitimate asset class by traditional financial institutions.
• However, some experts have raised concerns about the risks associated with leveraged trading, which can amplify both gains and losses. They argue that inexperienced investors could be lured into making risky bets on Bitcoin, which could lead to significant losses.

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