Nikolas Sargeant
Yuichiro Tamaki, leader of Japan's opposition Democratic Party for the People (DPP), has unveiled a bold proposal for cryptocurrency tax reform and regulatory overhaul. In a recent tweet, Tamaki outlined his vision for a more crypto-friendly Japan, should his party win the upcoming election.
"Vote for the Democratic Party for the People if you believe crypto assets should be taxed separately at 20% instead of as miscellaneous income," Tamaki urged voters. He added, "Crypto-to-crypto exchanges will be tax-free."
Tamaki's plan, titled "Supporting the Token Economy Using Crypto Assets," aims to foster a thriving Web3 and NFT ecosystem in Japan. Key points include:
- Implementing a flat 20% tax rate on crypto gains
- Increasing the leverage ratio from 2x to 10x
- Introducing cryptocurrency ETFs
- Converting the yen into an electronic currency
- Promoting the issuance of a digital local currency (CBDC)
This isn't Tamaki's first foray into crypto policy. Last year, he emphasized the need to "promote Web3" and "the token economy" to prevent brain drain and business exodus from Japan.
Other Political Parties Show Interest in Crypto Reform
The DPP isn't alone in recognizing the potential of digital assets. The ruling Liberal Democratic Party (LDP) has also signaled interest in reducing tax-related barriers for Web3 adoption. The LDP launched an "NFT Policy Review Project Team" and published a white paper stressing the importance of innovation in the Web 3.0 era.
Other politicians, such as Shun Otokita of the Japan Innovation Party, have joined the call for crypto tax reform. Private sector groups have also been pressuring the government to reconsider its approach to taxing digital assets.
As Japan grapples with its position in the global crypto landscape, these proposed reforms could significantly impact the country's digital economy and its attractiveness to crypto businesses and investors.
