A nationwide survey shows that 22.2% of Japanese investors left cryptocurrencies due to tax complexities, surpassing 19.4% who left due to price volatility.
Current owners view volatility at 61.4% and tax obligations at 60% as equal concerns, while 62.7% prioritize long-term wealth creation.
About 40% of neutral investors will consider taking more risks in cryptocurrencies if regulations are clearer, with reforms to lower taxes said to be on the horizon.
A recent survey revealed that Japanese investors are retreating from the digital currency market, not due to price volatility but because of complex tax requirements.
The Japanese financial planning platform 400F conducted a nationwide survey of 894 participants in November regarding their digital currency habits. Among former digital currency holders, 22% cited difficulties with the tax system as a primary reason for leaving. This surpassed price volatility, as 19% of former investors mentioned volatility as a key reason for leaving the digital currency space.
Administrative requirements outweigh market volatility $BTC
Current digital asset holders report that volatility (61.4%) and tax complexity (60%) are nearly equal challenges. In Japan, gains from digital currencies are classified as "miscellaneous income" and can be taxed at rates up to 55% after local taxes. Investors must track every trade, calculate gains or losses in yen, and report them annually. For many, these administrative challenges outweigh the benefits – although 62.7% state that creating long-term wealth is the primary reason for investing, compared to 15.1% who prefer short-term speculation.
Investors using NISA and iDeCo, two popular tax-preferred accounts for stocks and retirement, are particularly affected due to the complicated reporting requirements for digital currencies. Their experience with straightforward traditional investment accounts makes the paperwork for digital assets seem heavier.
Increasing calls for regulatory changes $ETH
The majority of respondents (70.6%) describe their risk appetite as neutral, aiming to balance risk and return. Nevertheless, about 40% of these "neutral" investors say they could take on more risk in digital currencies if Japanese regulators clarify their approach to digital assets and taxes.
This call for clearer regulation comes amid reports that the Financial Services Agency (FSA) of Japan plans to reclassify digital currencies as ordinary financial products and reduce the top tax rate to 20%. Such changes could significantly alleviate the tax burdens currently seen as reasons to leave the digital currency market.
Where investors in Japan look for information $BNB
The survey finds that respondents rely almost equally on specialized or official media (63%) and social or influencer platforms (58.9%) for digital currency information.
Overall, the results indicate that Japanese investors' interaction with digital currencies is more dependent on government regulation and administrative processes than on price volatility. Simplified tax systems could open up more growth for digital currencies in Japan's large economy.
#BinanceHerYerde #BinanceSquareFamily #BinanceSquare #NewsAboutCrypto #newscrypto
