Japan To Allow Digital Salaries In 2023 But Excludes Crypto
According to multiple local media reports, Japan has modified its laws on digital salaries. As a result, companies can now pay the salaries of individuals through money transfer fund providers. Unfortunately, Japan excluded the usage of digital currencies in this initiative.
Japan Revises Its Labor Standards Act
Japan’s Ministry of Health, Labor, and Welfare has endorsed an amendment to its Labor Standards Act. This revision allows the payment of digital salaries but prevents crypto salary payments.
The new rule will take effect next year in April. In the future, the government will allow wage payments to money transfer service providers’ accounts.
The government revised the rules due to changes in Japan’s financial landscape. There has been an increase in diversified remittance services and cashless payments in the country.
Unfortunately, the rule change does not include digital assets. Companies cannot transfer salaries to fund transfer firms as digital assets. It only allows currencies that can be changed directly into cash.
Meanwhile, the recent exclusion does not imply a blanket ban on crypto for salary payments. Moreover, the country could revise the rules later on.
Perhaps, the country wants the crypto sector to be well-regulated before doing so. Meanwhile, other nations are opening up to crypto usage in salary payments.
Salary earners in various countries are now receiving crypto as payments. Countries such as Brazil, Turkey, and Argentina have recorded high usage of crypto among their citizens.
Some African nations are also opening up to salaries in crypto, notably stablecoins. This is because they are cheaper and faster for international transfers.
Japanese Regulators Relaxes Laws On Crypto Assets
One big selling point for digital currencies is the ease of international transfers. The fees for transfers are quite cheaper compared to traditional banks.
In traditional banking, international transfers charge 2 to 5% of the amount transferred. Furthermore, remote work is gaining more popularity by the day.
Hence, remote workers in developing countries might switch to receiving payments in crypto. Although the crypto market has witnessed a huge decline, adoption has not slowed down.
Although Japan did not endorse crypto for salaries, the growth in the country’s crypto sector hasn’t declined. Recently, Japan’s financial regulators relaxed the laws guiding the crypto market.
As a result, crypto firms can now easily list digital currencies on their platforms. Japan also took steps to reduce money laundering using crypto.
The country tightened its regulations concerning money laundering. Now, Japanese authorities track all crypto remittances in the nation.
Additionally, entities conducting such remittances must share customer information with the necessary authorities. Furthermore, Japanese authorities now have the power to seize crypto assets.
With these developments, the Japanese government aims to make the crypto sector safe for investors and crypto firms.
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