Japan’s Democratic Party leader vows crypto tax cut to 20% if elected

Japan’s People’s Democratic Party leader Yuichiro Tamaki has promised to reduce the crypto tax to 20%, as well as a number of other crypto-related policies, if the party is elected.

Japanese politician and People’s Democratic Party leader Yuichiro Tamaki shared his party’s proposed policies regarding cryptocurrency in Japan in his X post on October 21. The DPP leader has proposed reducing tax crypto earnings to 20% if elected.

“If you think crypto assets should be taxed separately at 20% instead of being treated as miscellaneous income, please vote for the People’s Democratic Party. There will be no taxes when exchanging crypto assets for other crypto assets,” Tamaki wrote in a translated post.

Under Japan’s current regulations, crypto is classified under “miscellaneous income”; This means Japan’s crypto tax could be as high as 55%, depending on personal income. Meanwhile, a maximum tax rate of 20% applies to profits from stock trading.

One of the main points in the DPP’s policy statement is “supporting the token economy using crypto assets”. The party has pledged to use cryptocurrency as well as non-fungible tokens to support Japan’s economy.

In response to a user’s question about X, Tamaki said, “Anyway, for now, we want to make Japan a strong nation in the web3 business.”

In its policy statement, the DPP proposes taxing crypto gains at 20%, bringing the digital asset to the same level as taxes on exchanges. Therefore, under Tamaki’s plan, there will be no tax incident when trading crypto assets.

In addition to reducing crypto tax, the DPP promises to increase the leverage multiplier from two to ten times and introduce cryptocurrency exchange-traded funds. They also plan to convert the yen into an electronic currency.

“Promote the issuance of ‘digital regional currencies’ (provisional name) by local governments as crypto assets that will help revitalize local economies,” Japan’s DPP said.

According to a recent poll by Japanese media Mainichi, the DPP has little chance of winning Japan’s elections.

The Liberal Democratic Party and its coalition partner Komeito are leading with the majority of votes. Meanwhile, the DPP could see its representation increase from seven to 20 seats.

Liberal Democratic Party Chairman and current Prime Minister of Japan, Shigeru Ishiba, announced through a policy document following his victory on October 1 that he plans to use blockchain technology and NFTs to stimulate Japan’s economy by repurposing domestic assets such as food and tourism. a global scale.

Additionally, Digital Affairs Minister Masaaki Taira, the current chief of the LDP’s Web3 task force, has proposed a plan to connect various experiences and apply Japanese intellectual property laws to NFTs. He also proposed measures to support crypto startups by reforming Japan’s tax system.