🇯🇵Japanese Political Party Proposes Cryptocurrency Tax Reform to Promote Web3 and NFT Development
Recently, the president of Japan's Democratic Party for the People (DPP), Yuichiro Tamaki, proposed an exciting cryptocurrency tax reform plan. If he wins the election, he will lower the tax rate on cryptocurrency gains to 20%, instead of the current high miscellaneous income tax rate of up to 55%. This initiative aims to encourage the growth of the token economy, particularly in the Web3 and NFT sectors.
According to his plan, Tamaki also suggested allowing investors to carry forward losses for three years and exempting taxes when exchanging one cryptocurrency asset for another. Additionally, he mentioned raising the leverage cap from 2x to 10x and introducing cryptocurrency exchange-traded funds (ETFs). These reforms also include promoting the digitalization of the yen and allowing local governments to create their own digital currencies, with the ultimate goal of fostering regional economic development.
This means that if these proposals are implemented, cryptocurrency investors in Japan will enjoy the same tax treatment as traditional financial investments. Tamaki also expressed on social media platform X: "We want to make Japan a powerhouse for Web3 businesses."
Moreover, Japan plans to review the effectiveness of its cryptocurrency asset regulations in the coming months, which may pave the way for the launch of crypto ETFs. The Financial Services Agency (FSA) will evaluate the current Payment Services Act and the Financial Instruments and Exchange Act to ensure these regulations effectively protect investors, as most Japanese users view cryptocurrency assets as investments rather than payment methods.
In summary, this is not just a domestic policy shift in Japan but a signal to the global cryptocurrency market. If Japan successfully implements these reforms, it could set an example for other countries to follow, promoting global acceptance and application of cryptocurrencies.
