The Web3 Working Group of the Digital Society Promotion Headquarters of the Liberal Democratic Party of Japan recently released a noteworthy report, proposing some new recommendations on crypto asset taxation📊. Currently, Japan imposes a tax rate of up to 55% on income from crypto asset transactions, which is quite harsh in the global context. The report recommends adjusting this tax rate to 20% and adopting a "declaration separation taxation" system💡.

In addition, the report also proposes allowing losses from crypto asset transactions to be carried forward for up to three years⏳. This change will bring the tax treatment of crypto assets closer to other financial assets, and may also encourage more members of the public to invest in the crypto asset market📈.