Japans DPP Leader Proposes Crypto Tax Overhaul, Pushes for Web3 and NFT Growth
Yuichiro Tamaki, leader of Japans Democratic Party for the People (DPP), has proposed a crypto tax reform to support the growth of a token economy, including Web3 and NFTs if he wins the election.
His plan would lower the taxation on crypto gains to a 20% separate declaration tax instead of treating them as miscellaneous income.
Proposal for Lowering Crypto Taxes
According to the campaign document, Tamaki suggested allowing losses to be carried forward for three years and exempting taxes on exchanging one crypto asset for the other.
Other proposals include raising leverage limits from 2x to 10x and introducing crypto exchange-traded funds (ETFs). The reform plan also addresses monetary innovation at the regional level. This involves digitizing the yen and empowering local governments to create their own digital currencies. The end goal is to boost regional economies. Such steps could potentially direct Japan toward a more modern financial system.
Currently, crypto investors are taxed as high as 55% under the miscellaneous income category. Hence, a 20% tax on crypto gains would match the current tax rate for stock market earnings, essentially creating parity between digital assets and traditional financial investments.
Meanwhile, Tamaki noted that the DPP might explore tax reductions on other financial earnings down the road, but for now, the focus remains on establishing Japan as a leader in Web3. The DPP leaders translated X post read,
Anyway, for now, we want to make Japan a strong nation in the web3 business.
Reassessing Crypto Framework
CryptoPotato recently reported that Japan is looking to review the effectiveness of its crypto asset regulations over the coming months, potentially opening the door for crypto ETFs in the country.
The assessment will evaluate the current regulatory framework established under the Payments Services Act (PSA), which recognizes cryptocurrencies like Bitcoin as legal property and mandates crypto exchanges to comply with Anti-Money Laundering (AML) and Counterfinancing of Terrorism (CFT) rules. At the same time, the Financial Instruments and Exchange Act (FIEA) governs crypto derivatives.
Japans Financial Services Agency (FSA) essentially aims to determine whether these regulations have effectively protected investors, given that most Japanese users treat crypto assets as investments rather than payment methods.
The post Japans DPP Leader Proposes Crypto Tax Overhaul, Pushes for Web3 and NFT Growth appeared first on CryptoPotato.
Text source: CryptoPotato
