Key Takeaways
- 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.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
