Japan Blockchain Group Creates Tax Panel to Support DeFi, Stablecoin Adoption

The Japan Blockchain Collaborative Consortium, or BCCC, has created a dedicated tax panel to address tax issues that are hindering corporate adoption of digital assets such as stablecoins and decentralized finance, or DeFi.

BCCC announced on Aug. 12 that it had launched the Tax Policy Working Group, or TWG, to examine tax policies that could promote the broader use of blockchain technology in society and to propose related measures.

The panel will focus on tax issues that arise when digital assets are used for payments, remittances, fundraising and asset management. It aims to reduce tax uncertainty companies may face when using digital assets in business operations.

Its main activities will include regular seminars, panel meetings and reviews of overseas tax policy trends. It also plans to discuss how gains and losses from DeFi and stablecoin transactions should be recognized, how related assets should be valued, and what standards should apply to tax filings.

Based on those discussions, the panel plans to recommend institutional changes and new guidelines to Japan's tax authorities and relevant ministries. BCCC said tax treatment standards for companies using digital assets in actual business operations have not been sufficiently organized by transaction type, creating barriers to market entry and commercialization. It added that practical tax reforms tailored to payments and business use are needed.