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Similar to the US elections, Japan’s political leaders are too using crypto to woo crypto investors as right now the market is highly dependent on the risk assets to support the country’s financial health. Yuichiro Tamaki, leader of Japan’s Democratic Party for the People (DPP), is making some bold promises ahead of the upcoming general election. On October 21st, he took to X to share his party’s plan to revamp Japan’s crypto tax system, calling for support from digital asset enthusiasts who are tired of the current hefty tax rates.
Do you think this rate cut trump card will work in crypto’s favor? Let’s find out the reality!
【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
Fixing Japan’s Complicated Crypto Taxes
Japan’s crypto tax rules have already frustrated many investors, with gains taxed as high as 55% under the current system. However, Tamaki’s pledge aims to simplify this by proposing a flat 20% tax on crypto earnings, bringing it in line with other forms of investment income. He’s also pushing to allow for loss deductions and exempt crypto-to-crypto trades from being taxed, offering some much-needed relief for the country’s growing crypto community.
NFTs, Digital Yen, and More
But Tamaki’s vision doesn’t stop at tax reform. He’s also talking about using NFTs (non-fungible tokens) in governance and introducing cryptocurrency ETFs (exchange-traded funds) to encourage more investment. He’s even floated the idea of turning the yen into an electronic currency and creating “digital local currencies” to help boost regional economies.
Mixed Feelings From the Public
Tamaki’s proposals have sparked mixed reactions online. Many crypto enthusiasts are relieved to see someone finally addressing the confusing tax rules, but others remain skeptical, feeling that Japan’s government is still trying to squeeze more money out of citizens. Still, for those involved in the crypto space, Tamaki’s promises could bring some much-needed changes to how digital assets are treated in the country.
Despite the DPP’s limited political power, Tamaki’s message echoes with many who feel the current tax code is too harsh. Yet, polls suggest that the Liberal Democratic Party (LDP) and its coalition partner Komeito are likely to retain a majority, with the DPP possibly expanding to around 20 seats. Whether this crypto tax reform becomes a reality remains to be seen.