Japan’s DPP Leader Promises Crypto Tax Cuts Ahead of Elections

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Key Takeaways

  • Yuichiro Tamaki, leader of the Democratic Party for the People (DPP), proposes crypto-friendly tax reforms ahead of Japan elections.
  • The plan includes cutting crypto taxes to 20% and aligning them with stock market profits.
  • Despite bold promises, polls suggest the DPP remains an underdog in the upcoming elections.

As Japan gears up for early elections, Yuichiro Tamaki, leader of the DPP, has announced a crypto-friendly tax policy to attract voters. 

Tamaki outlined plans to reduce taxes on cryptocurrency gains to 20%, the same rate applied to stock market profits. 

Tamaki’s Bold Crypto Tax Proposal 

Tamaki’s proposal exempts crypto-to-crypto transactions from triggering a taxable event, aiming to boost the country’s crypto sector.

Under the current tax regime, crypto earnings are taxed as high as 55% for individuals earning over 40 million yen ($268,000). 

Similarly, crypto profits are filed under miscellaneous income, subjecting them to a much higher tax bracket compared to stocks. Corporate cryptocurrency holders also face a flat 30% tax on their holdings, regardless of profit or loss. 

Tamaki’s proposal seeks to remedy these discrepancies by easing the tax burden on crypto investors and promoting the use of non-fungible tokens (NFTs) in governance.

Recall that the early elections were triggered by Prime Minister Fumio Kishida’s resignation after months of financial scandals and low approval ratings. 

However, Tamaki’s DPP faces an uphill battle, controlling just seven out of 465 seats in the lower house. 

Polls from Mainichi suggest the DPP may gain some traction, potentially increasing its seats to around 20, but the party remains a significant underdog.

In his post, Tamaki called on followers to vote for the DPP and spread awareness of the party’s policies, particularly its crypto tax reforms.

Public Reaction and Future Prospects

Tamaki’s proposals have drawn mixed responses. Some voters criticized the heavy taxation in Japan, while others welcomed the simplification of filing tax returns under the new plan. 

The DPP’s broader platform also includes raising allowable leverage rates for crypto trading, establishing exchange-traded funds (ETFs), and introducing a digital yen currency. 

Tamaki has expressed his vision for Japan to become a leader in the Web3 space, positioning the country as a hub for digital innovation.

Tamaki’s policies align with global trends as similar crypto-friendly discussions are taking place in the U.S., with Republican candidate Donald Trump expressing support for digital assets.