by Sana Bukhari
Currently, Japan’s leader of the Democratic Party for the People or DPP, Yuichiro Tamaki, assures voters that if they vote for his party, he will cut the crypto tax to only 20% and introduce several Tamaki made this pledge in a post on X (Formerly Twitter) on Oct. 21 which may indicate a new direction to the taxation of cryptocurrencies in Japan.
【拡散希望】
暗号資産に関して明確な減税&規制改革を打ち出しているのが国民民主党です。暗号資産を雑所得ではなく分離課税20%にすべきと考える人は国民民主党に入れてください。暗号資産同士の交換時には税金をかけません。
こうした国民民主党の公約を拡散していただければ幸いです。… pic.twitter.com/hpbX966yTJ
— 玉木雄一郎（国民民主党代表） (@tamakiyuichiro) October 20, 2024
Tamaki said: “If you believe that crypto assets should be taxed at 20% as an independent type of income rather than as miscellaneous income, please vote for the Democratic Party for the People.” He also hastened to add that in this scheme, there would be no taxation on trading one cryptocurrency for another.
Currently, Japan taxes cryptocurrencies according to Miscellaneous Income, with tax rates going up to 55% depending on gross income. On the other hand, all profits made from stock trading are subjected to a fixed rate of 20%. According to Tamaki, his idea would align cryptocurrency profits with the stock market, reducing pressure on those involved in cryptocurrency transactions.
【拡散希望】
暗号資産に関して明確な減税&規制改革を打ち出しているのが国民民主党です。暗号資産を雑所得ではなく分離課税20%にすべきと考える人は国民民主党に入れてください。暗号資産同士の交換時には税金をかけません。
こうした国民民主党の公約を拡散していただければ幸いです。… pic.twitter.com/hpbX966yTJ
— 玉木雄一郎（国民民主党代表） (@tamakiyuichiro) October 20, 2024
Japan’s DPP Proposes Crypto Leverage Increase and Digital Yen
The DPP’s other policies combine measures to support the growth of Japan’s crypto and blockchain ecosystem. The party has pledged to back the “token economy,” utilizing NFTs and cryptocurrencies to spur the economy.
Besides, the DPP has proposed raising the leverage ratio in cryptocurrencies from two times to ten and launching exchange-traded funds in cryptocurrencies. They also recommend that the yen become an e-cash to spur financial innovation.
“Support the development of ‘digital regional currencies’ as crypto issues by local governments to stimulate economic revitalization in specific regions”, the DPP mentioned in the policy platform.
Still, as much as the DPP offers these tall blues, it stands for a very rocky campaign in the election. In a recent poll, Japanese media outlet Mainichi noted that the party may have reserved the possibility of regaining a majority. Currently, the voter support favors the ruling party, the Liberal Democratic Party (LDP), and its coalition partner Komeito. However, the DPP could gain more seats and increase to as many as 20 seats in parliament.
The current Prime Minister of Japan, Shigeru Ishiba of the LDP, has also demonstrated a great interest in blockchain and NFT technology. Earlier in an Oct. 1 policy document, he explained how he would leverage blockchain to take Japanese local resources, including food and tourism, to the global market. Masaaki Taira, who leads the Web3 task force for LDP and is also the Minister of Digital Affairs, has advocated for tax reforms to spur the crypto start-up companies.
総合課税化は将来的な検討課題で今は考えていません。とにかく今は、日本をweb3ビジネス強国にしたいと考えています。
— 玉木雄一郎（国民民主党代表） (@tamakiyuichiro) October 20, 2024
With Japan still experimenting with blockchain and Cryptocurrency, Tamaki’s proposition could one day help dictate the future of Japan’s Digital Economy. While the DPP’s opinion on implementing these policies is uncertain, the party’s aim to cut the burden of taxation on crypto traders has elicited positive heat within the Japanese crypto community.
#blockchain #crypto, #decentralized, #distributed, #ledger