- Japanese Minister Taro Aso chose to point out the necessity of a name change rather than indulging in a tax reform debate.
- Reports based on global Stablecoin submitted by the Financial Stability Board(FSB) and the Financial Action Task Force(FATF). This is in response to the Osaka Leader’s declaration.
- Acknowledging the potential benefits of financial innovation, they agree that global Stablecoin comes with a set of serious regulatory risks.
“The name ‘crypto’ is suspicious, so why not use Japanese like Stablecoin?” replied Japanese Minister Taro Aso when Representative Osamu Okita of the Japan Restoration Society asked him about cryptocurrency assets. Further, there were questions on the much-needed tax reforms such as the introduction of separate taxation of virtual currencies. Minister Aso chose to point out the necessity of a name change rather than indulging in a tax reform debate.
He later pointed out that it was necessary to invest more than saving money in each household. Since it was already difficult to recommend the use of cryptocurrency for household purposes, he chooses not to add a more negative stance by introducing separate taxation.
On questions to the FSA about the ‘margin ratio of 2X’ and the possibility of it shrinking the Crypto industry, the FSA countered. It said that the basis of the decision was discussions with ‘Scholars of Crypto assets’. They were also based on those in the account of the FX trading industry. Public opinions from general traders also taken into consideration. In addition, trailing the fall of virtual currency this March, he said that double the margin was necessary for consumer protection.
Japanese Minister Taro Aso on Crypto Tax Reforms
The report, in short, says that:
1. They support the ongoing work on the existing and emerging risks arising from financial innovations and welcome the reports on Global Stablecoins submitted by the Financial Stability Board (FSB) and the Financial Action Task Force (FATF).
2. They look forward to further reports by the FSB and the FATF on its ongoing work and economic implications including monetary sovereignty issues.
3. Acknowledging the potential benefits of financial innovation, they agree that global Stablecoin comes with a set of serious public policy and regulatory risks including money laundering, illicit finance. So, before mass commencement of such operations, consumer and investor protection needs evaluation and proper address.
What Are Stable Coins? How Are They Different From Other Virtual Currencies?
Stablecoins are virtual monetary units designed to curtail the volatility involved with cryptocurrency, by relating them to some ‘stable’ assets. Further, being able to convert itself to fiat money, exchange trade commodities such as metals or industrial metals. They are basically redeemable virtual currency.