Japan PM to urge G7 to work to tackle N. Korea's cryptocurrency theft

The Mainichi

a day ago

TOKYO (Kyodo) -- Japanese Prime Minister Shigeru Ishiba is set to call on his Group of Seven counterparts to work together to tackle North Korea's cryptocurrency thefts at their summit in Canada later this month, government sources said Wednesday.
Ishiba's decision comes amid allegations that North Korea is using illicitly obtained virtual assets to fund its development of weapons of mass destruction, prompting demands for stronger international cooperation to cut off its financial lifelines.
With Pyongyang bolstering its relations with Moscow in the military field, Japan is also eager to deepen collaboration with European nations supporting Ukraine, which has been under invasion by Russia since February 2022, the sources said.
The G7 countries, meanwhile, plan to establish a task force to review tax exemptions on cross-border e-commerce involving small parcels, the sources said, as retailers flood the markets of member nations with cheap goods.
The three-day summit is scheduled to kick off from Sunday. Canada, this year's rotating president, has sounded out Japan about participating in the task force, the sources added.
The move reflects growing concern among G7 members about the strain that the volume of parcels containing low-value goods puts on customs processing.
The countries also seek to provide some level of protection to domestic businesses subject to sales and consumption taxes, from which products sold by overseas retailers, notably those in China, are exempt.
Under the "de minimis" rule, Japan currently waives trade and consumption taxes on imported items priced 10,000 yen ($69) or less, except for rice, sugar and some other items.
In 2024, approximately 170 million boxes valued under the threshold were imported, accounting for about 90 percent of the total number approved by customs, according to Japan's Finance Ministry.
Chinese e-commerce giants like Shein and Temu have taken advantage of the tax exemption to grow their presence in Japan and other large markets.
The G7 members believe that the surge in these shipments is straining customs operations and weakening border controls against counterfeit products and illicit drugs.
In May, the United States revoked its tax exemption for small parcels from China, citing concerns about the inflow of illegal drugs, particularly fentanyl. Japan is also considering a review of the tax exemption system for such shipments, the sources added.