Connect with us

Legal

Japan’s top crypto lobby groups push for lower taxes to attract talent

Published

on

Japan’s top crypto lobby groups push for lower taxes to attract talent

Japan’s top crypto lobby groups push for lower taxes to attract talent Zeynep Geylan · 11 hours ago · 2 min read

The lobbying groups are planning to ask the government to make crypto issuing and holding cheaper to prevent talented individuals from leaving the country.

2 min read

Updated: July 27, 2022 at 10:48 pm

Advertisement

Cover art/illustration via CryptoSlate

Japan’s strongest crypto lobbying groups say that current tax rates prevent industry growth and call for lower taxes to prevent talent outflow.

Bloomberg News reported that two of the top lobbying groups, the Japan Cryptoasset Business Association (JCBA) and the Japan Virtual and Crypto assets Exchange Association (JVCEA), are working on a proposal to submit to Japan’s Financial Services Agency (FSA) this week.

Politicians from various parties have been raising the same concerns as well. A member of the ruling Liberal Democratic Party, Masaaki Taira, is one of the most vocal politicians on the matter. He has been expressing and pursuing his colleagues to loosen the regulations to “stem the outflow of digital talent.”

Changes in tax rates

According to an internal memo seen by Bloomberg, the proposal will offer re-adjustments to the current tax policy to make holding and issuing crypto cheaper.

Advertisement

Japan currently taxes all profit from crypto investments, both realized and unrealized, at a rate of 30% for corporations and up to 55% for individual investors.

The proposal will offer to lower these percentages. It’ll offer to make all gains on crypto earnings tax-free, as long as they’re not gained from short-term positions for the corporations. For individual investors, on the other hand, it’ll suggest a fixed rate of 20%.

Since certain politicians raised the same issues, the FSA has been discussing the need to lower crypto taxes as well, according to Bloomberg. Even though there are talks about reducing taxes, the watchdog didn’t decide whether to include this update in its annual revision. The annual revision is submitted to the tax authorities every August. The JVCEA and JCBA are planning to deliver the proposal by then.

Crypto regulations in Japan

Japan is the first country that implied a legal system to regulate cryptocurrencies. Japan recognized crypto assets as legal tender as early as April 2017.

Japan’s watchdog FSA strengthened the rules for crypto exchanges in 2019 after the country suffered the Coincheck hack. The hack was one of the largest at the time, where hackers stole over $500 million in crypto assets.

Advertisement

Since then, all crypto exchange companies must comply with the country’s anti-money laundering (AML) and combatting financial terrorism (CFT) rules.

Following the 2019 update, Japan continued to imply more rules and regulations on the crypto space. In 2021, the county established an initiative to regulate the DeFi operations. Following the LUNA stablecoin crash, Japan passed a bill that limited stablecoin issuances only to licensed banks.

High taxes and tight regulations have already pushed some crypto companies out of Japan. Most relocated to the closest and most-friendly nation, Singapore.

Stake Technologies’ CEO Sota Watanabe, who also moved his company to Singapore, told Bloomberg:

“Japan is an impossible place to do business.T he global battle for a Web 3.0 hegemony is under way, and yet, Japan isn’t even at the start line.”

Despite the tight rules, FSA thinks Japan’s crypto sphere is self-regulating. The country established JVCEA in 2018 to self-regulate the crypto industry. However, the FSA expressed its unhappiness with the self-regulation system very recently and said:

Advertisement

“When Japan decided to experiment with self-regulation of the cryptocurrency industry, many people around the world said it would not work. Unfortunately, right now it looks as though they may be correct.”

Censorship

Aave confirms TRM Labs API blocked “dusted” Ethereum wallets – access restored

Published

on

Aave confirms TRM Labs API blocked “dusted” Ethereum wallets – access restored

Aave confirms TRM Labs API blocked “dusted” Ethereum wallets – access restored Liam ‘Akiba’ Wright · 5 hours ago · 2 min read

Users regain access to Aave’s front end after compliance API flagged Tornado Cash-dusted wallets.

2 min read

Updated: August 14, 2022 at 11:10 pm

Advertisement

Cover art/illustration via CryptoSlate

Aave has confirmed that the ban list provided by TRM Labs included Ethereum wallets that had been “dusted” with 0.1 ETH through Tornado Cash. The falsely flagged wallet addresses have now been removed from the “sanctioned” addresses and are again able to connect to the Aave front-end.

The ban issued by Aave only stopped users from interacting with its IPFS-hosted web interface for the Aave protocol. Users could still connect via CLI or forking the front-end to host in their environments. While this was far from ideal for those expecting to be able to use a clean UI, it did mean that everyone still had access to their funds in some way or another.

With the issue happening over the weekend, CryptoSlate has not been able to obtain a response to requests for comment from Aave. However, the Aave official Twitter account released an eight-tweet announcement regarding the issue.

Aave confirmed that the TRM Labs API was responsible for banning users connected to Tornado Cash, as reported by CryptoSlate on Saturday. The move to add the API was said to have been an “integration [that] was both critical & urgent.”

Advertisement

1/8 The Aave team’s top priority is building a safe & secure system for users. We integrated TRM’s API on the Aave IPFS frontend, which is why some users may be experiencing trouble accessing the Aave app, one of the frontends to the Aave Protocol.

Read 👇🏼 for more info

— Aave (@AaveAave) August 13, 2022

Aave’s direct response to banning dust attack victims was to confirm that it had “mitigated” the issue.

“The team mitigated these issues by immediately addressing this, and we continue to evaluate responsible and reasonable risk mitigation given the circumstances.”

In a forward-looking statement, Aave declared:

“The Aave team will continue to innovate. We encourage the community to remain engaged and actively fight for open and fair finance.”

The speed at which Aave was able to reactive the innocent addresses is to be commended. However, the sanction of addresses without knowledge of their connection to illegal activities sets a potentially dangerous precedent.

Advertisement

CryptoSlate has created opened lines of communication with TRM Labs and will provide further updates.

Continue Reading

Crime

India’s ED freezes $46 million of Vauld’s funds on money-laundering charges

Published

on

India’s ED freezes $46 million of Vauld’s funds on money-laundering charges

India’s ED freezes $46 million of Vauld’s funds on money-laundering charges Christian Nwobodo · 7 hours ago · 2 min read

Vauld’s entity in India failed to conduct due diligence on funds sent through the exchange and was uncompliant with India’s Enforcement Directorate.

2 min read

Updated: August 12, 2022 at 7:46 pm

Advertisement

Cover art/illustration via CryptoSlate

Singapore-based Crypto Lender Vauld is facing money laundering charges in India after $46.5 million (3.70 billion Indian rupees) was frozen from its local entity, Flipvolt Technology.

India’s Enforcement Directorate (ED) confirmed in an Aug. 12 statement that it is investigating Vauld (Flipvolt Technologies) and Yellow Tune Technologies for allegedly facilitating illegal transfers through the crypto exchange.

According to the regulator, 23 entities under probe by the ED had reportedly deposited 3.70 billion rupees into Yellow Tune’s crypto wallet, which was subsequently sent to foreign wallet addresses without following due process and raising suspicious transaction reports (STRs).

The statement confirmed:

Advertisement

Yellow tune by using the assistance of Flipvolt Crypto-Exchange, which has very lax KYC norms, no EDD mechanism, no check on the source of funds of the depositor, no mechanism of raising STRs, etc., assisted the accused fintech companies in avoiding regular Banking channels, and managed to easily take out all the fraud money in the form of crypto assets.

The Indian Authority accused the exchange of showing laxity in handling the case.  It failed to provide the authority with KYC details of the wallets and could not account for crypto transactions made by Yellow Tune.

It has made no sincere efforts to trace these crypto assets. By encouraging obscurity and having lax AML norms, it has actively assisted M/s Yellow Tune in laundering the proceeds of crime worth Rs 370 Crore using the crypto route.

Consequently, the Indian exchange owned by Vauld will forfeit the laundered amount until it provides comprehensive details in defense of the charges against it.

Indian’s ED out against Money laundering

India’s Enforcement Directorate (ED) earlier launched an investigation into the activities and compliance of non-banking financial companies (NBCFs) to the Reserve Bank of India guidelines.

The investigation report showed that many defaulting fintech companies laundered their profits using crypto. The crypto exchanges implicated in the probe allegedly failed to conduct due diligence before helping the firms send the funds to foreign wallets.

According to India’s Economic Times, about 10 crypto exchanges are under probe by the ED for facilitating the laundering of more than 10 billion rupees ($130 million).

Advertisement

Consequently, on Aug. 5, the ED raided Wazirx’s territory to freeze about $8 million belonging to the exchange. WazirX is said to have helped convert the Indian rupees to crypto and then sent the funds to foreign wallets through Binance.

Continue Reading

Circle

Netherlands arrests suspected Tornado Cash developer

Published

on

Netherlands arrests suspected Tornado Cash developer

Netherlands arrests suspected Tornado Cash developer Oluwapelumi Adejumo · 2 hours ago · 1 min read

The Dutch Fiscal Information and Investigation Service revealed that it started a criminal investigation into Tornado Cash in June because it suspected that the protocol was being used for illegal activities.

1 min read

Updated: August 12, 2022 at 11:45 am

Advertisement

Cover art/illustration via CryptoSlate

Dutch authorities arrested an unnamed 29-year-old man suspected to be a Tornado Cash developer in Amsterdam on August 10.

According to a press statement issued by the Fiscal Information and Investigation Service on August 12, the man is “suspected of involvement in concealing criminal financial flows and facilitating money laundering through the mixing of cryptocurrencies through the decentralized Ethereum mixing service, Tornado Cash.”

The crime agency revealed that it started a criminal investigation into Tornado Cash in June because it suspected that the protocol was being “used to conceal large-scale criminal money flows, including from (online) thefts of cryptocurrencies (so-called crypto hacks and scams).”

Additionally, the agency stated that it is not ruling out further arrests in the protocol investigation.

Advertisement

Tornado Cash was sanctioned by the U.S. Treasury on August 8, leading to widespread condemnation from the crypto community. Several crypto firms like Circle and dYdX have blocked users using the crypto mixer.

Meanwhile, U.S. Secretary of State Anthony Blinken has said that the government would continue to clamp down on the use of crypto mixers that are being used by criminals to launder funds.

CryptoSlate will report more details as the news develops.

Advertisement
Continue Reading

Top posts

․bit Raises $13M To Build Cross-Chain Decentralized Identity Protocol ․bit Raises $13M To Build Cross-Chain Decentralized Identity Protocol
BIT2 hours ago

․bit Raises $13M To Build Cross-Chain Decentralized Identity Protocol

sponsored .bit (did.id) has raised $13 million to build a cross-chain decentralized identity protocol. The Series A round, completed one...

What a complete yolk! Comparing Bitcoin to Eggs and why it matters What a complete yolk! Comparing Bitcoin to Eggs and why it matters
adoption3 hours ago

What a complete yolk! Comparing Bitcoin to Eggs and why it matters

What a complete yolk! Comparing Bitcoin to Eggs and why it matters Liam ‘Akiba’ Wright · 4 seconds ago ·...

Biggest Movers: SHIB Remains Near 3-Month High, Whilst LEO Hits 2-Week High  Biggest Movers: SHIB Remains Near 3-Month High, Whilst LEO Hits 2-Week High 
Analysis3 hours ago

Biggest Movers: SHIB Remains Near 3-Month High, Whilst LEO Hits 2-Week High 

Shiba inu remained close to a three-month high to start the week, after breaking out of a key resistance level...

Why Hashing Is Critical In Ensuring Sage Encryption In Cyber Security Why Hashing Is Critical In Ensuring Sage Encryption In Cyber Security
Cyber Security4 hours ago

Why Hashing Is Critical In Ensuring Sage Encryption In Cyber Security

Hashing is really important for integrated encryption in cyber security Assuming you work in the innovation or cyber security industry,...

Bitgert (BRISE) Marketcap To Explode Past Baby Doge And Safemoon (SFM) This Month Bitgert (BRISE) Marketcap To Explode Past Baby Doge And Safemoon (SFM) This Month
SafeMoon4 hours ago

Bitgert (BRISE) Marketcap To Explode Past Baby Doge And Safemoon (SFM) This Month

Bitgert’s massive developments that include adding disruptive products and projects to the Brise ecosystem are key skyrocketing Bitgert marketcap. The...

New Brazil bill wants to tokenize mined gold on blockchain New Brazil bill wants to tokenize mined gold on blockchain
adoption4 hours ago

New Brazil bill wants to tokenize mined gold on blockchain

New Brazil bill wants to tokenize mined gold on blockchain Oluwapelumi Adejumo · 60 mins ago · 1 min read...

Solana Price Climbs To $47 As SOL Bulls Outshine Pesky Bears Solana Price Climbs To $47 As SOL Bulls Outshine Pesky Bears
btcusd5 hours ago

Solana Price Climbs To $47 As SOL Bulls Outshine Pesky Bears

Solana (SOL) price has locked its sights on the goal from day one. Solana’s price is extremely bullish Price spiked...

President Of Central Bank Of Brazil Disagrees With ‘Heavy Hand’ Regulations For Cryptocurrencies President Of Central Bank Of Brazil Disagrees With ‘Heavy Hand’ Regulations For Cryptocurrencies
Brazil5 hours ago

President Of Central Bank Of Brazil Disagrees With ‘Heavy Hand’ Regulations For Cryptocurrencies

The president of the Central Bank of Brazil, Roberto Campos Neto, has defended the use of more moderate regulations in...

Interlay launches Bitcoin-backed stablecoin iBTC on Polkadot network Interlay launches Bitcoin-backed stablecoin iBTC on Polkadot network
adoption5 hours ago

Interlay launches Bitcoin-backed stablecoin iBTC on Polkadot network

Interlay launches Bitcoin-backed stablecoin iBTC on Polkadot network Samuel Wan · 1 hour ago · 2 min read The new...

TA: Top 5 Crypto You Should Watch This Week – BTC, ETH, BNB, GMT TA: Top 5 Crypto You Should Watch This Week – BTC, ETH, BNB, GMT
Bitcoin6 hours ago

TA: Top 5 Crypto You Should Watch This Week – BTC, ETH, BNB, GMT

Top 5 Crypto You Should Watch This Week, with many crypto altcoins producing price gains of two or more digits....

Bitcoin, Ethereum Technical Analysis: BTC Lower, Following Brief Rally Above $25,000 Bitcoin, Ethereum Technical Analysis: BTC Lower, Following Brief Rally Above $25,000
Analysis6 hours ago

Bitcoin, Ethereum Technical Analysis: BTC Lower, Following Brief Rally Above $25,000

Bitcoin was trading lower to start the week, after the token briefly rose above $25,000 during Sunday’s session. As of...

Monero enhances privacy, security features with new upgrade Monero enhances privacy, security features with new upgrade
Monero7 hours ago

Monero enhances privacy, security features with new upgrade

Monero enhances privacy, security features with new upgrade Oluwapelumi Adejumo · 2 hours ago · 2 min read The Monero...

Report Shows Crypto Assets Record Steady Growth As Inflation Lowers Report Shows Crypto Assets Record Steady Growth As Inflation Lowers
BTC7 hours ago

Report Shows Crypto Assets Record Steady Growth As Inflation Lowers

The United States’ newest release on its inflation rate for July has created a celebration reason for many, especially the...

MANA’s network activity could bring forth a shorting opportunity here MANA’s network activity could bring forth a shorting opportunity here
Altcoins9 hours ago

MANA’s network activity could bring forth a shorting opportunity here

Every once in a while, cryptocurrencies go through a phase where volumes contract and prices are restricted within a narrow...

Monero (XMR) Climbs Over 7% Before Weekend Hard Fork Monero (XMR) Climbs Over 7% Before Weekend Hard Fork
btcusd9 hours ago

Monero (XMR) Climbs Over 7% Before Weekend Hard Fork

Monero (XMR) price has surged by as much as 7% in a matter of 24 hours before network upgrade or...

USDT supply up almost $2B over 30 days, USDC supply falls after blocking Tornado Cash linked wallets USDT supply up almost $2B over 30 days, USDC supply falls after blocking Tornado Cash linked wallets
MIM10 hours ago

USDT supply up almost $2B over 30 days, USDC supply falls after blocking Tornado Cash linked wallets

USDT supply up almost $2B over 30 days, USDC supply falls after blocking Tornado Cash linked wallets Oluwapelumi Adejumo ·...

GameFi as a major achievement of the Korean Wave (Hallyu) movement GameFi as a major achievement of the Korean Wave (Hallyu) movement
Company News11 hours ago

GameFi as a major achievement of the Korean Wave (Hallyu) movement

July 15th was a music milestone. Ten years ago in Summer 2012, the release of “Gangnam Style,” catapulted South Korean...

Ripple lawsuit: SEC receives another shock after latest court ruling Ripple lawsuit: SEC receives another shock after latest court ruling
News11 hours ago

Ripple lawsuit: SEC receives another shock after latest court ruling

American watchdog SEC took a recent hit as the battle against Ripple moved into an interesting phase this week. There...

Trending

Daily Bitcoin MiningEarn At least $50 daily with just your phone