The Japan Financial Services Agency (FSA) announced on September 24 that it would revise regulations related to cryptocurrency payments and design processes to optimize the handling of crypto assets by Japanese companies in an attempt to reduce the burden on operators and postpone the outflow of talents and companies.

Establish a special group to continuously revise encryption regulations

According to reports, with the expansion of the encryption market in recent years, issues of exchange regulatory regulations have emerged, especially in financial technology. Japan has formulated regulations on the security of applying emerging technologies to financial services. The Financial Services Department will establish a special group on the "Funds Settlement Law" to study encryption-related regulations and policies and continue to revise the Fund Settlement Law.

Heavy taxes lead to brain drain, and the tax system needs to keep pace with the times

At the previous WebX 2024 conference, Japan's Liberal Democratic Party's Web3 project staff said, "Japan's current tax system has not kept pace with the times. Even if they are interested in starting a business domestically, tax issues have caused many outstanding talents and companies to choose to move overseas for development. This phenomenon is becoming more and more obvious.”

Tax reform has made progress, but non-mainstream token audits still face challenges

He added that some progress has been made in the tax reform, and the problem of instant evaluation and taxation of companies issuing their own tokens has been successfully solved. The following year, another company encountered a similar problem and properly solved it. However, there are still some issues that still require efforts. If a company holds "non-mainstream tokens", it will be difficult for accounting firms to conduct audits. Especially when new startups issue tokens, audits are more difficult.

In summary, the Japan Financial Services Agency is actively revising the "Fund Settlement Law" in the hope of reducing the tax burden and stimulating game industry players to invest in the encrypted game market. However, tax issues are still an important challenge that hinders talents and companies from staying in the country, especially in non-mainstream industries. The audit of tokens still needs further improvement.

This article Japan’s Financial Services Agency reforms crypto payment regulations and optimizes crypto asset processing procedures and tax systems first appeared on Chain News ABMedia.