Coincheck Reports 5x Surge in Revenue, Japan Assembly Members Call to Make Tokyo a Special ‘Tax-Free’ Crypto Zone
During the period of Oct. and March, Monex Group acquired a crypto exchange that was hacked in Jan. 2018 gained 210,000 users. Meanwhile, ruling party members want to transform the city into a crypto “trading center.”
Japan is now aiming to boost its cryptocurrency industry with a member of the ruling party Tokyo Metropolitan Assembly wanting to transform the capital into a “trading center” for cryptos. And for this, they are advocating for a 0% tax on cryptocurrency trading.
Assembly member Yuu Ito talked about bolstering the city's financial sector by increasing its involvement in the digital asset industry.
“According to our research, the number of financial institutions that are gathered in the city is key to our success or failure,” Ito was quoted as saying, “unfortunately, Tokyo is lagging behind in that regard.”
Fellow Tokyo Metropolitan Assembly member Nobuko Irie is of a similar opinion as she said,
“The country is printing deficit-financing bonds in the wake of the corona. Even in Tokyo, we must create new financial resources by setting technology that can generate wealth like blockchain as a growth strategy.”
While praising the rising bitcoin adoption, she raised concerns about how politicians were handling the situation and urged for necessary action to make Tokyo a crypto trading center.
“Politicians should now tackle the issues of monetary policy and taxation around bitcoin. If you do it in the nation, you will lose the sense of speed, so create a special zone in Tokyo to use it tax-free in the city. I think it is the role of politicians to identify issues and clear them systematically while running.”
Virtual currency and blockchain can also be used to turn its economy around, Irie said.
Gains on cryptocurrencies are taxed as capital gains, but Bitcoin “is originally a currency, therefore, it's not easy to use unless taxation is set to 0%,” said Ito.
Japan has been seeing a growth in crypto adoption until the crypto exchange Coincheck was hacked in January 2018, which has been acquired by online brokerage Monex Group. Hindering the growth of the crypto frenzy in the country, people are now hopeful of moving to the next stage after undergoing a period of scrutiny and renewal.
Coincheck’s revenue actually increased fivefold to ¥20.8 billion (over $191 million) in the 2020 fiscal year compared to the previous year, as per earnings released by the Monex Group last month.
The exchange also gained 260,000 users, out of which 210,000 were accumulated in the second half of the business year ending in March, reported Japan Times. However, the volume on the exchange only including the BTC/JPY pair, is still only about $150 million, as per CoinGecko.
“Due to our hacking problem, not only us but each Japanese cryptocurrency exchange had to strengthen measures to protect customers” and prevent cyberattacks, money laundering, and other inappropriate transactions, said Yusuke Otsuka, an executive, and co-founder of Coincheck.