Crypto Policies Take Center Stage in Japan’s Election — Leaders Court Voters With 20% Tax Cap

• Political opposition in Japan is proposing ambitious pro-crypto policies.
• Japan will hold a snap election on Oct. 27, 2024.
• Crypto reforms and regulations are already underway in Japan.

Crypto is taking the main stage of Japan‘s snap election as political opposition attempts to draw voters with pro-crypto tax reforms.

If elected, the leader of Japan’s Democratic Party for the People (DPP), Yuichiro Tamaki, has offered to lower the tax burden on cryptocurrency profits to 20%.

Crypto Taxes

As per an Oct. 20 post on X, Tamaki wrote (translated):

“If you think crypto assets should be taxed separately at 20% instead of treated as miscellaneous income, please vote for the Democratic Party for the People. There will be no tax when exchanging crypto assets with other crypto assets.”

Hammering home a commitment to crypto and Web3, Tamaki’s proposal has four pro-crypto policies for voters to consider.

Tamaki’s Four Crypto Proposals

First, the variable 15% to 55% “miscellaneous income” tax rate for crypto will be removed and replaced with a flat rate of 20%.

He also proposes provisions for deducting losses from taxable income and exempting crypto-to-crypto trades from taxable events.

Thirdly, Tamaki and the DPP want to introduce non-fungible tokens (NFTs) into governance and innovative Web3 apps.

Finally, the party is also offering to increase leverage rates for crypto trading from 2x to 10x, as well as open up domestic crypto exchange-traded funds (ETFs).

Japan’s Snap Election

The snap election is part of incoming Japanese Prime Minister Shigeru Ishiba’s bid to gain a greater majority for the Liberal Democratic Party (LDP) in the lower house and broaden his mandate to pursue his policy agenda.

Ishiba had announced plans to call an election before winning the party leadership vote and becoming Japan’s prime minister.

Ishiba took over from Fumio Kishida on Oct 1, 2024, following pro-Web3 Kishida’s resignation amid corruption scandals. On Oct. 9, Ishiba dissolved the lower house of parliament to regain the trust of LDP voters and prepare for the Oct. 27 vote.