Japan May Unify Crypto Tax Rate

Vice Prime Minister of Japan believes that crypto tax size should not differ from that established for exchanges and currency markets operations
26 June 2018   757

Vice Prime Minister and Minister of Finance of Japan Taro Aso proposed to change the regime of taxation of profits from operations with cryptocurrency, Bitcoin.com reports.

In February of this year, the Japanese authorities established for cryprocurrency traders income tax on a progressive scale in the range of rates from 15% to 55%. At the same time, the National Tax Agency classified revenue from operations with digital money as "miscellaneous income". Also, the agency obliged investors to file annual tax returns.

Yesterday, on June 25, Taro Aso proposed to the Upper House of the Budget Committee to make a single taxation rate for cryptocurrency transactions. According to him, its size should not differ from stock exange tax which currently stands at about 20%.

Soon after the changes in the tax legislation on Change. org, a petition appeared asking to make the tax rate for operations with crypto-active assets in Japan the same as on the stock market. The petition was signed by 11,786 people.

According to the results of the last year in Japan, 331 payers of taxes with a cumulative income of 100 million yen (approximately $ 914 thousand) were declared by the crypto currency.

Circle to Move Exchange Operations Offshore

The decision was made due to regulatory uncertainty in the United States and now the majority of users will be served by Bermudas unit
23 July 2019   86

The majority of Poloniex users from outside the US will now be serviced by a new unit of this cryptocurrency exchange, which opens in Bermuda, the platform operator, Circle, said on Monday, July 22.

The company said the decision was made due to regulatory uncertainty in the United States. The work of already existing divisions of companies in the United States themselves, as well as in Ireland, the United Kingdom and Hong Kong, will continue.

Representatives of Circle note the advanced and extremely clear legislation in Bermuda, which opens up opportunities for the rapid development of innovations in the field of cryptocurrencies, and for business promotion.

It is based on the Digital Asset Business Act (DABA), adopted in 2018, which provides full control and supervision of financial services related to cryptocurrencies, including the issuance of digital assets, the purchase and sale of coins, exchange transactions, and custodial services.

According to the aforementioned company law to operate in Bermuda, it is necessary to obtain a license, and as Circle reports, today it has become the first large cryptocurrency company in the world to obtain such a Class F (full) license.

As a result, we’ll be able to deliver new innovations, including asset listings and trading services, to global customers while also staying true to our commitment to compliant, well-supervised operations and customer protections.

Circle Team

In the commentary, CoinDesk Circle CEO Jeremy Allaire said that over 70% of Poloniex’s entire customer base accounted for overseas users.

Europe and Asia are both pretty significant markets for us in particular. USDC stablecoin is particularly popular with institutional Asian investors. The lack of regulatory frameworks significantly limits what can be offered to individuals and businesses in the U.S.

Jeremy Allaire

CEO, Circle

It was precisely the lack of clear regulation that forced Circle to dismiss about 30 employees in May, and as Jeremy Allair has now stated, the company plans to hire approximately the same number of new people over the next two years, who, however, will get other roles.

The project to establish a new international operations hub for our market, exchange and wallet services, was a major project. It took a long time working with the Bermuda government and the Bermuda Monetary Authority.

Jeremy Allaire

CEO, Circle

The head of Circle also said that a greater variety of assets will become available to international clients of Poloniex, and the exchange can expand the range of financial services that it cannot offer in the United States.

What kind of products and services in question, Allair did not specify, adding only that users can expect more opportunities for revenue. At the same time, he mentioned the existing stacking services for Cosmos and Stellar.