Liberal Democratic Party web3PT publishes proposals on taxation of virtual currency transactions, etc.

Towards the era of mass adoption of web3

On the 6th, the Liberal Democratic Party Digital Society Promotion Headquarters web3 project team (PT) released the completed “web3 white paper (draft)”.

This white paper was created based on interviews with many experts and experts. We presented issues that should be addressed immediately to resolve them, and issues that should be started and deepened from now on for the future spread of web3. In addition, as an attachment, the progress monitoring of the NFT white paper recommendations is also described.

On April 6, the web3 project team of the Liberal Democratic Party Digital Society Promotion Headquarters (Masaaki Taira, PT chair) compiled the “web3 White Paper – Toward an era where everyone can utilize digital assets -“.

All from Masaaki Taira official website → https://t.co/05ZsCS8Tao

— Masaaki Taira (@TAIRAMASAAKI) April 6, 2023

connection: The white paper of the Liberal Democratic Party NFT team is approved by the subcommittee, defining NFT as “the detonator of Web3”

At the beginning of the white paper, web3PT pointed out that “this country was once becoming the center of web3”. “Until the middle of the 2010s, Japan led the world’s crypto industry, but before we knew it, web3’s business environment had come to be evaluated as being significantly inferior to other countries. I had no choice but to leave Japan. There are quite a few entrepreneurs and investors,” he said.

In the future, we will prepare for the era of “mass adoption” in which not only “early adopters” who are sensitive to new technologies and trends but also wallets and digital assets are owned and exchanged by everyone. I thought it should.

connection: Why did the Japanese government start promoting “Web3 policy”?Summary of important points and related news

Policy recommendations

Based on the structure described above, the white paper describes “themes”, “problems” and “recommendations”.

Issues requiring immediate attention

First, in “Immediate Issues to be Addressed in Promoting web3”, recommendations were made based on the following themes.

• International rule making
• tax reform
• Securing audit opportunities
• DAO (Decentralized Autonomous Organization)
• Examination, issuance and circulation of various tokens
• consumer protection
• Entry of financial institutions into web3
• NFT business
• Diversification of investment vehicles and schemes

connection: Liberal Democratic Party Web3PT creates proposals for expanding NFT adoption in the sports industry

Regarding the tax reform, which is attracting a lot of attention from crypto asset (virtual currency) investors in Japan, I once again recommended that the following points should be considered regarding transactions.

• Making profits and losses related to transactions subject to separate self-assessment taxation
• Permit carry-over deduction (for 3 years from the next year) from the income amount of loss related to virtual currency
• Derivative transactions should also be subject to separate self-assessment taxation.
• Profit and loss related to transactions shall not be taxed at the time of exchange between virtual currencies, but shall be subject to taxation at the time of exchange to legal currency.

connection: The Liberal Democratic Party Web3PT aims for an urgent proposal for the virtual currency tax system, such as “subject to separate taxation at a tax rate of 20%”

In addition, regarding tokens owned by corporations, it was pointed out that taxation issues related to holding tokens issued by other companies remain after the fiscal 2020 tax reform bill was created. He suggested that the following recommendations should not be “should be considered” but should “be definitely implemented this year”.

connection: Next fiscal year’s tax reform, partial review of virtual currency corporate tax rules

Issues to start and deepen discussion

Next, the following themes were taken up in “Issues that should be discussed and deepened in anticipation of the development of web3”.

• Private Law Treatment of Digital Assets
• Support for overseas expansion of web3 content
• web3 business license
• Safe and secure usage environment
• Unhosted Wallet
• Local government support
• ML/FT measures
• Investment DAO
• metaverse

connection: Prime Minister Kishida, willing to revitalize local areas using digital technology such as Metaverse, in response to the Budget Committee

Regarding unhosted wallets, he pointed out that the challenge is to balance identity verification in financial and administrative services with anti-money laundering (AML) and counter-terrorist financing (CFT) requirements.

It also recommends that “necessary research and discussion should be started to sort out issues, including the impact on a wide range of fields in the public and private sectors, from the possibility of utilization to the issues associated with it.”

In the future, web3PT will monitor the NFT white paper and this proposal in order to ensure that the business environment for web3 is properly maintained.

The post Liberal Democratic Party web3PT publishes proposals on taxation of virtual currency transactions, etc. appeared first on Our Bitcoin News.