High Taxation in Japan is Driving Crypto Entrepreneurs Away

According to Sota Watanabe, the CEO of Web3 infrastructure company Stake Technologies Pte. , Japan should minimize corporate taxes on crypto businesses, so as to prevent entrepreneurs from leaving the nation.

As the high-profile crypto businessman pointed out:

“At least 20 or more firms have opted to establish their crypto business abroad rather than Japan because of the high levy.”

Ever since he moved his company to Singapore in 2020, Watanabe has indicated that he has hope that the Japanese government would revamp the corporate levy starting next year as a result of  the move. He expressed that he wished to return the company to his home country if that were to happen.

Watanabe further added:

“It may take a few more years before Japan lowers income taxes for cryptocurrency gains made by individual investors.”

Several crypto lobbying groups have been urging the Japanese government to ease corporate tax rules because they have been ruining the digital asset sector. 

In an effort to promote the growth of the local digital asset industry, Watanabe has joined a growing list of organizations calling on the Japanese government to reconsider the corporate tax system because it is hampering the development of the local marketplace for digital assets.

In the meantime, Japanese lawmakers recently revealed that they are planning to amend the Act on Punishment of Organized Crimes and Control of Proceeds of Crime (1999) so that courts and law enforcement agencies would be granted the authority to seize cryptocurrencies that are linked to criminal activities as soon as possible. 

In spite of this, it was indicated that the Ministry of Justice would hold intensive discussions with the Legislative council in order to resolve various stalemates, for instance how the private keys to a particular cryptocurrency would be obtained when enforcing the seizure of the assets.