1. The Japanese Financial Services Agency (FSA) has submitted a proposal for tax reforms in 2024.
2. The proposal focuses on reviewing the taxation of year-end market valuations of crypto assets held by third parties.
3. Currently, domestic companies
#holding crypto assets are taxed based on the market price at the
#end of the term, including unrealized gains and losses without cash flow.
4. The proposed reform aims to encourage the
#use of blockchain technology and entrepreneurship in the Web3 environment.
5. Year-end
#market value taxation will apply to legal entities, specifically third parties other than issuers, who continuously hold
#relevant crypto assets.