TechFlow reports that on October 22, according to CoinDesk, as Japan's national election approaches, major political parties are emphasizing the importance of reforming cryptocurrency tax regulations. Yuichiro Tamaki, leader of the Democratic Party for the People (DPFP), is actively seeking support from crypto-focused voters by proposing clear tax reductions and regulatory reforms for cryptocurrencies. On October 20, he stated via social media that if voters support taxing crypto assets at a flat rate of 20% instead of treating them as miscellaneous income, they should vote for the DPFP. Additionally, the DPFP advocates launching cryptocurrency exchange-traded funds (ETFs), digitizing the yen into electronic currency, and encouraging local governments to issue "digital regional currencies" to revitalize regional economies.
Under the current system, cryptocurrency gains are taxed as income, with top earners facing rates as high as 45%, while capital gains from securities such as stocks are taxed at 20%. Other parties are also pushing for policy changes. Cryptocurrency tax policies in Japan have been under review since last year. The Liberal Democratic Party (LDP) highlighted the significance of web3 and blockchain in its white paper, while the Constitutional Democratic Party of Japan (CDPJ) aims to establish a legal framework for decentralized autonomous organizations (DAOs) and explore the use of central bank digital currencies (CBDCs).
