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Tax on bitcoin must be reduced to 0 to become a global financial powerhouse

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.

Bitcoin Traders Eye ‘Scary’ Retreat After Returning To Recent Range

Bitcoin is coming off its best week in three months and is returning some of its gains, with strategists marking a decline below a key trendline that typically predicts further weakness. Bitcoin has faded from the recent highs it reached last week, dropping about 7% since Friday. The decline has pushed it back below $40,000 and the coin is now trading within the January range at $37,914 as of 2:29 PM. in New York City. “This rally has been so fast that you have to be a little bit careful about how quickly it has accelerated in recent weeks,” said JJ Kinahan, chief market strategist at TD Ameritrade, in an interview.

Bitcoin decline

Bitcoin has also fallen below its 100-day moving average – a medium-term trendline followed by chartists – and it may see additional weakness until its 50-day moving average is around $34,773. Safemoon coin has risen.

Some strategists say Bitcoin’s decline is just a normal pullback after it surged early last week. Supporting comments from billionaire Elon Musk and Cathie Wood of Ark Investment Management LLC, as well as speculation about Amazon.com Inc.’s possible involvement. the cryptocurrency sector had helped to recover.

“If it does bounce back, it’s going to be pretty bullish,” said Matt Maley, chief market strategist for Miller Tobacco + Co. “However, if it sees a lot more downside, it gets pretty scary fast.” The Bloomberg Galaxy Crypto Index, which tracks some of the major cryptocurrencies, lost a whopping 4.3% on Tuesday.

Focus on crypto

Cryptocurrencies have also become a focus for regulators in recent days — a new push from Congress to require crypto brokers to report transactions to the Internal Revenue Service could lead to unwanted tax bills, Bloomberg News reported this week.

The new rules — part of the $550 billion bipartisan infrastructure package now under consideration by Congress — would also force companies to disclose transactions of digital assets over $10,000. It’s all set to raise $28 billion. Still, digital asset fans applauded the development, saying that clearer rules from policymakers could potentially strengthen the industry in the long run.

Meanwhile, Gary Gensler, chairman of the U.S. Securities and Exchange Commission, signaled an avenue for the approval of a Bitcoin exchange-traded fund, a move that crypto fans believe could make digital assets further acceptable to mainstream investors.

The chairman said an ETF that complies with the SEC’s strict rules for mutual funds can provide investors with the necessary protection. Speaking in his first major speech on cryptocurrencies, Gensler also signaled an openness to an ETF focused solely on Bitcoin futures. Cardano (ADA) has started to rise.

Although Bitcoin is extremely volatile and its percentage moves are too large, it often forms identifiable technical patterns, said Frank Cappelleri, a desk strategist at Instinet. The coin’s massive surge from 2020 to April 2021 was born from a multi-month bottom formation and from then on, Bitcoin broke out, consolidated, formed new bullish patterns and made new highs until the momentum finally dissipated.

“When the next upward leg begins, a similar chain of events should happen again,” he said. And while the recent breakthrough attempt to $40,000 did not encourage upside follow-up, the consolidation since May has created a potential bottom formation. That scenario remains a possibility if Bitcoin can hit a higher low from its July low.”