Japan's National Tax Agency (NTA) will not impose taxes on digital asset companies on profits that have not yet been realised. This could make it easier for these companies to conduct their core business in the country, as well as facilitate the growth of the crypto industry.
Under current regulations, cryptocurrency companies are required to pay taxes on unrealised profits, which has proved costly for many companies in Japan.
The National Tax Agency is now moving towards a more generous policy, which analysts believe will be an important step to help Japan establish itself as a major crypto hub at the global level.
Taxation has become a critical issue for many countries in recent times. Some time ago, India set the tax rate for cryptocurrency companies at 28%. Currently, the US, EU and Australia are actively working on the issue.
On June 25, Bitcoin reached a one-year peak of around $31.4k. Market insiders suggest that increased involvement of institutional investors in the major crypto asset may have triggered a bullish momentum. However, analysts do not believe a full-fledged "bull run" is on the way due to various economic and regulatory issues.
Mikael van de Poppe, a well-known name of crypto expert, believes that Bitcoin could soon retreat to $28.5k, which could be a great opportunity for short-term buying. However, at the moment, BTC is still far from its all-time high of $69K.
