- Japan’s DPP proposes reducing crypto taxes from 55% to 20% to stimulate investments
- The proposal also includes tax exemptions for crypto-to-crypto trades and introducing cryptocurrency ETFs
- Increased leverage for traders, from 2x to 10x, is part of the reform plan aimed at boosting Japan’s competitiveness in the crypto space
Tamaki of Japan’s ruling DPP seeks to cut taxes on crypto gains from 55% to 20%.
Tax Reform Needed to Incentivize Crypto Investors
Japan is reviewing levies on capital gains collected on Bitcoin and cryptocurrencies. Yuichiro Tamaki, a DPP chief, is pressing for a decrease in the tax rate on gains from bitcoin and crypto from 55% to 20%.
These are part of the party’s campaign for the October 27 elections, aimed at making Japan more competitive in the crypto space.
In his post on X translated, Tamaki writes:
“Spread the news: The Democratic Party for the People of Japan (DDP) is the one that proposed a clear tax reduction and a regulatory reform on crypto assets. If you think that cryptocurrencies should be taxed with a separate rate of 20% instead of miscellaneous income, join the DDP. No tax is imposed on crypto assets when they are exchanged between crypto assets. We would be grateful if you could spread these commitments of the Democratic Party for the People of Japan.”
Tamaki further proposes tax breaks for crypto-to-crypto trades and the establishment of crypto ETFs. He also intends to raise leverage for traders up to 10x from 2x.
These are meant to increase investments and growth in the sector, as Japan’s current tax regime, which levies crypto gains as high as 55%, stands in the way.
Conclusion
In short, the move by Tamaki to cut crypto taxes to 20% may turn Japan into an investor hub, with the market fostering growth and innovation.
If this reform package passes, it might be a seminal moment in Japan’s cryptocurrency market, especially given the ever-changing global regulatory landscape.
What do you think? I think this may be a game-changer for Japan’s crypto market, given the international competition.
