Amid the initial phase of the crypto bull run, a very good decision by the government of Japan came to support institutional crypto adoption to the next level.
Japan is one of the crypto-friendly jurisdictions. In this country investment & transactions in cryptocurrencies are fully legal. The Country’s Payment Services Act defines “crypto-assets” as payment methods that are not denominated in fiat currency and can be used to pay unspecified persons. All the crypto companies which want to provide crypto services in the Japanese crypto market are required to register with the FSA agency.
In the latest, Japan introduced some changes in its crypto tax rule. As per reports, under the country’s crypto tax reform, there will be a change in the scope of the year-end market value assessment in the Corporate Tax Law.
Before this, all the institutions which were holding cryptocurrencies were required to pay tax based on the variance between market value and book value at the end of the fiscal year.
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But now the changes in the new rule will allow these companies to pay tax on behalf of the net profits resulting from the sale of crypto.
However, this new tax rule will take time to come into effect, as the fiscal year runs from 1 April to 31 March, just like several other countries.
According to the majority of the media reports such new rules will motivate institutional investors to show a better inclination toward cryptocurrency investment with very less management hurdles.
This good news for the crypto taxpayers came amid the highly bullish sentiments and obviously, it will play a vital role in helping to give an additional push to the rally in the trade price of Bitcoin & other top flagship crypto assets.
Bitcoin price action
The current trade price of Bitcoin (BTC) is $43,029 & this trade price is 63% higher over the last 3 months of trade price.
Since the beginning of this year, the trade price of Bitcoin only surged. The multiple Bitcoin spot ETF applications by the top fund managers, including BlackRock, played a vital role in initiating the bull phase of the crypto market.
Read also: Many crypto Investors claim MEXC Crypto Exchange doing scams with customers
New Crypto tax rule in Japan will help Institutional money inflow
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