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Crypto Taxes Become Among Election Promises in Japan! Here Are the Details
Crypto Taxes Become Among Election Promises in Japan! Here Are the Details
Democratic People’s Party (DPP) leader Yuichiro Tamaki wants to cap taxes on cryptocurrency earnings at 20%.
Author:
Utku Yanık
21.10.2024 – 11:05
Update:
8 seconds ago
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Yuichiro Tamaki, leader of Japan’s Democratic People’s Party (DPP), has announced a bold policy proposal to cap taxes on cryptocurrency earnings at 20%.
Japan’s DPP Leader Proposes 20% Tax Cap on Crypto Earnings Ahead of General Elections
The promise comes as part of the party’s campaign ahead of the October 27 general election, where it hopes to gain traction among crypto-friendly voters.
A Change from Current Tax Policy
Japan’s current tax regime treats cryptocurrency earnings as miscellaneous income, which can lead to taxes of up to 55%.
Tamaki’s proposal advocates for a flat 20% tax on crypto profits, bringing the taxation framework closer to that used for stocks and other financial assets. It also proposes tax exemptions for crypto-to-crypto exchanges to reduce friction in trading.
“If you believe cryptocurrency should be taxed at a flat 20% rate instead of miscellaneous income, please vote Democratic for the People,” Tamaki wrote on X.
He also stressed that “Japan should aim to become a major cryptocurrency nation through deregulation and tax reform.”
Tamaki’s policy presentation outlines further measures to revitalize Japan’s crypto market:
Encouraging greater participation in the market by increasing the leverage limit for individual investors from 2x to 10x.
Introducing cryptocurrency ETFs to attract more institutional investors.
Based on tax revisions approved by the government last December, there will be no tax on unrealized crypto gains for companies that hold the assets long-term.
“With leverage currently capped at 2x, there is little incentive for speculators to enter the market,” said Daiki Moriyama, director of blockchain startup Oasys.
He added that trading volumes on Japanese crypto exchanges remain low, forcing them to struggle with profitability.
*This is not investment advice.
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