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Japan's Bold CRYPTO Move: Scrapping Corporate Tax on Crypto Gains Ignites Web3 Growth!

Japan's Bold CRYPTO Move: Scrapping Corporate Tax on Crypto Gains Ignites Web3 Growth!

Bitcoin ETF Applicants to File Updated S1 Form After SEC’s Comments – A Delay Signal?

The recent developments surrounding the spot Bitcoin exchange-traded funds (ETFs) have prompted speculation within the crypto community about potential delays in their approvals by the U.S. Securities and Exchange Commission (SEC). After issuers filed revised applications, disclosing previously undisclosed fee structures, the SEC swiftly returned comments, sparking concerns.

Chamber of Digital Commerce CEO Perianne Boring highlighted the SEC's additional comments on the pending applicant's S-1 forms, interpreting it as a delay signal. However, Bloomberg Intelligence ETF analyst James Seyffart offered a contrasting perspective, suggesting that the SEC's quick response might not necessarily indicate a delay but rather underscored the rapid pace at which the regulatory body was processing these documents.

Finance lawyer Scott Johnsson emphasized that the submission of S-1 forms didn't necessarily need to align with the approval timeline of 19b-4, the spot Bitcoin ETF application forms. This was illustrated by previous instances, such as the case of Hashdex in 2022, which received initial comments after 19b-4 approval.

Furthermore, Johnsson pointed out that the swift comments might signify the SEC's efforts to expedite the approval and launch process, unlike the prolonged process seen with futures ETFs. Fox Business journalist Eleanor Terrett also corroborated this notion, noting that sources she spoke to expressed confidence that the SEC wasn't altering its plans.

Terrett echoed a sentiment that this process was part of meeting the deadline by January 10, without indicating a deviation from the original schedule. Meanwhile, the disclosed fee structures among the issuers vary, with Bitwise setting a competitive tone at 0.24%, VanEck and ARK Invest slightly higher at 0.25%, and Invesco notably offering a fee waiver for the first six months, reducing its fee from 0.59% to zero.

In essence, while initial interpretations hinted at a potential delay, expert opinions and insights suggested that the SEC's comments might not necessarily disrupt the anticipated approval timeline for the Bitcoin ETFs.

Russian Experts: 2024 Will Be a Big Year for Cross-border Crypto, CBDC Payments

Russian legal and tech experts foresee 2024 as a pivotal year for the adoption of cryptocurrencies and Central Bank Digital Currencies (CBDCs) like the digital ruble, especially in cross-border payments.

Andrey Tugarin, head of GMT Legal, highlighted the emerging trend of utilizing digital assets, including cryptocurrencies, digital financial assets, and the digital ruble, for cross-border transactions. Tugarin noted the appearance of various Russian projects in 2023 focused on facilitating cross-border payments via cryptocurrency.

Bank-led initiatives and joint bank-crypto exchange projects have emerged, allowing some companies to engage in direct crypto-based transactions overseas with Moscow's apparent approval. However, Tugarin lamented the absence of established solutions for using digital financial assets and the digital ruble for such purposes.

Maria Telegina from the Moscow Digital School anticipated the launch of an experimental platform in 2024 for international payments using cryptocurrencies and digital financial assets. She highlighted their potential to address challenges posed by EU and US-led sanctions, easing pressure on the Russian financial system.

Dmitry Kirillov, a Blockchain Law teacher, expressed hope for the early completion of testing and regulatory frameworks for the digital ruble, anticipating its swift implementation as a functional payment tool.

While the Central Bank ruled out a digital ruble rollout before 2025, the Finance Ministry pledged that citizens would experience CBDC payments within the next year. Kirill Lyakhmanov from EBR Law Firm predicted increased interest in cryptocurrencies due to global financial market fragmentation and emphasized the future potential of utility tokens, even in Russia.

Regarding a state-run crypto exchange in Moscow, initial enthusiasm has dwindled, but domestic companies have reportedly explored crypto-based trade solutions with Iranian counterparts.

Analyst Predicts Major Corrections for Bitcoin and Ethereum After Recent Rallies

A prominent crypto analyst anticipates significant corrections for Bitcoin (BTC) and Ethereum (ETH) following their recent upward trends. Capo, a senior analyst, reiterated his past predictions for Bitcoin while also highlighting the potential impact of a spot Bitcoin ETF approval on the market dynamics.

Capo emphasized whales' interest in the $48,000-$50,000 BTC range, suggesting that the ETF news might trigger volatility and result in a short-lived rally followed by a substantial rejection. He shared a chart projecting Bitcoin's ascent to $51,000 post-ETF approval, followed by a descent to the $30,000-$31,000 range.

Regarding Ethereum, Capo forecasted a rise to $2,600 before an anticipated correction. He anticipated a similar correction for other altcoins after a brief surge, especially those with lower market caps. Capo anticipated a temporary market surge with BTC hitting $48,000-$50,000 and ETH reaching $2,500-$2,600 before a pivotal local peak, signaling the initiation of short positions aiming for new bottom levels.

Expanding on his long-standing forecast, the analyst reiterated expectations of Bitcoin dropping to $12,000, potentially around April. At present, Bitcoin has seen a 7% surge in the last 24 hours, trading at $46,776.

Japan's Move to Scrap Tax on Unrealized Crypto Gains

Cryptocurrencies and the expanding Web3 industry are taking center stage in Japan's economic reform. The Cabinet's groundbreaking decision to eliminate corporate taxation on unrealized cryptocurrency gains signals a significant stride toward nurturing Web3's growth within Japan's economic framework.

Prime Minister Fumio Kishida's administration acknowledges the crypto industry's potential as a catalyst for economic reform. Listening to inputs from influential bodies like the Japan Crypto Asset Business Association (JCBA) and Japan Blockchain Association, the government takes a proactive stance, fostering the sector's development.

The proposal, awaiting Japan's parliament deliberation, targets ending corporate taxation on the difference between market and book values of externally issued crypto assets. This rectification aims to address a discrepancy that hindered Web3 enterprises' growth by unfairly taxing third-party issued assets, forcing premature asset liquidation and impeding growth.

Gaku Saito, JCBA's tax review committee chairman, highlighted how the tax policy restrained Web3 companies, imposing financial liabilities before generating profits, hindering expansion and innovation. Japan's pivot from traditional bureaucracy to agile policy development demonstrates its commitment to supporting emerging sectors dynamically.

Beyond tax reform, this proposal positions Japan as a competitive hub for Web3 innovation, attracting talent, fostering entrepreneurship, and driving technological advancements. It seeks to reverse the trend of Web3 companies relocating due to tax implications, revitalizing Japan's role as a global tech leader.

This move aligns with economic reform, showcasing Japan's commitment to harnessing emerging technologies for prosperity. Scrapping corporate tax on unrealized crypto gains marks Japan's strategic step in nurturing Web3's growth and embracing transformative technologies for future prosperity.

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