DPP Leader Proposes Crypto Tax Reform Before Elections

As Japan's national elections approach, Yuichiro Tamaki, leader of the Democratic Party for the People (DPP), has proposed significant crypto tax reforms to attract voter support. He suggests reducing the tax on cryptocurrency gains to a flat 20% from the current rate of up to 55%, aligning it with stock market profit taxes. This proposal includes exempting taxes on crypto-to-crypto exchanges and introducing crypto exchange-traded funds (ETFs), alongside plans for the digitization of the yen to boost regional economies. Despite these ambitious plans, the DPP holds only 7 out of 465 seats in Japan’s House of Representatives, making it challenging to implement these changes. Meanwhile, Japanese regulators remain cautious about approving crypto ETFs, citing concerns over taxation and stringent regulations, contrasting with the proactive adoption seen in countries like the U.S. and Australia. Japan's financial authorities have acknowledged these issues and are reviewing their regulatory frameworks, potentially paving the way for more accommodating crypto policies in the future.