Japan used to be a major crypto hub there for a while but the last few years it really struggled in terms of the economic landscape. A big factor recently was the rate hike they did which kind of threw the world into a whirlwind as Japan is normally one of the lowest interest rate barrowers for many countries. Soon after the backlash the Japan government came out strictly saying they would not be increasing rates anymore as a way to try and calm the worry of the global economy.

Japans fiat system is actully huge and ranks third in the world in terms of trade volumes. First is the USA and second is the Korean Won. Which I think many of us here on the hive blockchain know lol.

Japans Old System

Japan caught a lot of crap with the Mt. Gox system which really threw their entire system into an overly aggressive oversight committee and pretty much stagnated their crypto economy for years.

A few adjustments have been made over the years however Japan has been very far behind in terms of getting companies involved with crypto again. Many other countries continue to outpace the adoption of crypto and businesses around crypto.

Japans Big Change

Japan has been starting to wake up to over regulation as countries like China continue to beat them out of many sectors. These sectors in the past have been automotive and electronics and crypto is becoming the next.

There's been a lot of push for the government there to change their ways as the current systems are making it so that Japan continues to fall further and further behind. This call seems to be getting answered.

Another big change with Japan recently is the removal or at least less expressive taxes on companies and people holding assets.

One of the hot topics even during the USA elections were the tax of unrealized gains. What that means is just for holding on to a asset if it increases in value but you haven't sold it you would still be taxed on it because of the unrealized gains. It only becomes realized when you sell the asset and that's mainly how things work for all asset classes.

Currently the Japan government is also doing a full review of their crypto policies and while it's anyone's guess what might come of it part of what some experts are saying is that it could open up Japan to ETFs for crypto.

Another big shift could be changing the tax code on crypto over there. The tax code currently classes crypto as miscellaneous which can be taxed up to a whopping 55%! A change in the rules would push it into the finance sector which would put it in line with around a 20% tax rate.

If these factors play out over the 2025 era we could maybe see two of the worlds largest fiat systems start injecting into bitcoin and other crypto assets. What are you thoughts? Do you think Japan will loosen things up and start to become very pro crypto once again?

Posted Using InLeo Alpha