Crypto Tax Reform On The Horizon? Japan’s Tamaki Pledges Change If Elected

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As a seasoned crypto investor with over a decade of experience navigating the volatile and unpredictable world of digital currencies, I find myself intrigued by the recent developments in Japan’s political landscape and their potential impact on the crypto industry.

2020 has seen a surge of interest in the crypto world, not only due to fresh memes, price manipulation, or Bitcoin‘s bullish trend. It’s also become a contentious topic in political debates, creating divisions among voters and potentially propelling the industry to greater heights. This conversation isn’t limited to the U.S. elections and Trump’s pro-crypto views; digital currency as an election matter has extended to Japan, where they are set to hold their general elections on October 27th.

Yuichiro Tamaki, head of the Democratic Party for the People (DPP), has pledged tax reductions and changes as part of their strategy to boost support. On his official Twitter or X account, Tamaki stated that his party is working on tax policies favorable to cryptocurrencies, promising potential tax cuts of up to 20%.

In a translated X post, Tamaki said:

If you believe that crypto assets ought to have a separate 20% tax rate rather than being categorized as other income, consider supporting the Democratic Party, known as the ‘Party for the People’.

Tamaki Courts The Crypto Crowd Ahead Of General Elections

This year’s elections are particularly significant due to prolonged financial controversies and disfavored government leaders enjoying luxurious lifestyles. These elections, scheduled for October 27th, will occur a year ahead of schedule, in the wake of Prime Minister Fumio Kishida’s resignation due to low public approval ratings.

【拡散希望】
暗号資産に関して明確な減税&規制改革を打ち出しているのが国民民主党です。

暗号資産を雑所得ではなく分離課税20%にすべきと考える人は国民民主党に入れてください。暗号資産同士の交換時には税金をかけません。

こうした国民民主党の公約を拡散していただければ幸いです。…

— 玉木雄一郎（国民民主党代表） (@tamakiyuichiro) October 20, 2024

In the upcoming elections, Tamaki’s Party for the People finds itself as a significant underdog, holding just seven out of 465 seats in the lower house of the National Diet. Consequently, it’s no wonder that they are taking daring steps to draw in as many voters as they can, aiming to increase their support base significantly.

In the very same Twitter or X post, Tamaki urged followers to cast their votes for the party and share information on their tax-related plans. Moreover, the post contains a link to the party’s official document outlining these policies. Lastly, Tamaki expressed gratitude towards supporters for helping spread the word about their cryptocurrency policy.

Tamaki And DPP’s Crypto Pledge – Here’s What To Expect

Tamaki’s plan suggests boosting the adoption of digital tokens known as Non-Fungible Tokens (NFTs) in administrative matters, while suggesting a new 20% tax on cryptocurrency holdings. At present, these assets are subject to a 55% tax, categorized under other income sources. The policy also offers relief for instances of loss and exemption from taxes when one crypto asset is exchanged for another.

総合課税化は将来的な検討課題で今は考えていません。とにかく今は、日本をweb3ビジネス強国にしたいと考えています。

— 玉木雄一郎（国民民主党代表） (@tamakiyuichiro) October 20, 2024

The DPP’s policy document proposes raising the limits on borrowing for trading activities and creating Exchange-Traded Funds (ETFs). Furthermore, they pledge to transform the yen into a digital form of currency and launch a program for issuing local digital currencies.

Bumpy Road Ahead For Crypto Legislations

In the political arena, there’s growing attention on cryptocurrency matters during elections, as demonstrated by the US and Japan. The US finds itself with Donald Trump, currently favored in betting markets, and Elon Musk advocating for this sector. However, Tamaki’s party in Japan is encountering a challenging climb. Meanwhile, the Japanese populace is grappling with issues related to inflation and high taxation at present.

In response to Tamaki’s post, comments varied among users. One individual argued that the nation is merely attempting to stay afloat by imposing taxes on its citizens. However, other users expressed approval for the idea, stating their satisfaction with the prospect of streamlined tax return filing processes.

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2024-10-21 11:12