Members of Tomin First no Kai, a Tokyo political party, are calling for a reduction in the tax on bitcoin. And not just any reduction, the tax must effectively become 0%. This is part of their plan to transform Tokyo into a financial center.
Status is crumbling
Yahoo News writes that political party member Yu Ito says Tokyo’s position as a financial powerhouse is declining compared to other major cities in the region and worldwide. Cryptocurrency Spain is popular.
“According to our research, the number of financial institutions established in the city is the key to our success or failure. Sadly, Tokyo is lagging behind in that regard, “Ito said.
Tax on bitcoin is in the way
A progressive cryptocurrency strategy will be crucial in this situation, Ito said, but Tokyo’s tax on bitcoin stands in the way of wider adoption. As in many other countries, Japan currently taxes Bitcoin capital gains such as capital gains on stocks. “However, Bitcoin is originally a currency,” Ito argued, “therefore it is not easy to use unless the tax is set to 0%.”
In the Netherlands, bitcoin is part of your total assets, you pay tax once a year on your total assets above 50,000 euros. In the US, every profitable transaction is taxed. Back to Japan.
Special zone for bitcoin
Ito further emphasized that the city government should “now address the issue of monetary policy and taxation around Bitcoin” and “create a special zone in Tokyo so that you can use it tax-free in the city.” Cryptocurrencies English is popular.
Ito’s party is further committed to making the addition of financial centers part of the redevelopment plans for the site of the Tsukiji Fish Market, the formerly largest fish market in the world and a tourist attraction steeped in history until its closure in 2018. The Tokyo city previously unveiled plans to build a convention center, hotel and casino in Tsukiji Market.
In that respect, Ito looks like the mayor of Miami. Francis Xavier Suarez will only see his city grow if Miami has a friendlier climate for financial and tech companies.