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    Japan slow to approve crypto ETFs, maintains strict tax, regulations

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    Japan is hesitating to approve cryptocurrency exchange-traded funds (ETFs) due to tricky tax laws and potential risks. While the US and Hong Kong have recognized these digital assets, Japan continues to tax crypto profits at a high 55%, compared to the 20% tax on traditional ETFs. However, Japanese companies, such as investment firm Metaplanet continue to invest in cryptocurrencies, suggesting a keen interest despite the country’s cautious stance.

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    Japan is not keen on giving the green light to cryptocurrency exchange-traded funds (ETFs) just yet, unlike other global markets that have warmed up to this digital asset. Even though more and more people in Japan are pushing for it, the country’s tax laws and regulations make it difficult to adapt to this change.

    Our buddy Mario Nawfal, a well-known entrepreneur and the star of “The Roundtable Show” on X, sums it up best by saying Japan’s attitude towards crypto ETFs is still in “HODL mode.”

    Now, if we compare this to the United States and Hong Kong, they’ve already approved spot Bitcoin and Ether ETFs, showing their keen interest in blending cryptocurrency with traditional finance. This is clear from the $329 million investors pumped into BlackRock’s Bitcoin Trust recently.

    While the US and Hong Kong are diving headfirst, Japan’s finance bods are still being very careful because of the unpredictability and risks tied to crypto ETFs.

    One of the main sticking points is Japan’s taxing method. Right now, they tax general crypto earnings at a whopping 55%. In comparison, traditional ETFs are only taxed at about 20%. Yuichiro Tamaki, the leader of Japan’s Democratic Party for the People, recently suggested a change to this when he proposed a 20% tax for crypto assets if voters back his party.

    Despite all this, Japanese firms aren’t hitting the brakes on their crypto game. For instance, the Japanese investment company Metaplanet recently bought even more BTC, bringing their total holdings to around 640 BTC, which is approximately $40.5 million. They’re kinda the “MicroStrategy” of Asia, going all out on their BTC acquisition.

    Source: Cointelegraph

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