BitFlyer CEO: Japan's proposed founder tax hike will drive talent overseas

Yuzo Kano, CEO of Japanese cryptocurrency exchange bitFlyer, has pushed back against a government proposal to increase capital gains taxes on stock sales for company founders and executives, arguing the move will trigger a talent exodus. He contended that compensation for venture founders is already "at a very low level." While other countries offer preferential tax rates to attract top talent, Japan is moving in the opposite direction, Kano noted. He explained that most venture founders receive almost no initial salary, citing his own experience of earning just 4.8 million yen (about $33,000) annually only after bitFlyer had achieved some growth. Without the potential profits from his stock holdings, he added, the company itself would have struggled to survive. The Japanese government and ruling party have recently signaled their intent to impose a tax of up to 80% on such capital gains, prompting backlash from Kano and other business leaders.