Japan DPP Leader Proposes Crypto Tax Overhaul, Boosts Web3 and NFT Growth

Yuichiro Tamaki, leader of Japan's Democratic People's Party (DPP), proposed cryptocurrency tax reform to support the growth of a token economy, including Web3 and nfts, if he wins the election.

His plan would reduce taxes on crypto profits to a 20% separate reporting tax instead of treating them as miscellaneous income.

Proposal to reduce taxes on cryptocurrencies

According to the campaign documentTamaki suggested allowing losses to be carried forward for three years and exempting the exchange of one crypto asset for another from taxes.

Other proposals include increasing leverage limits from 2x to 10x and introducing cryptocurrency 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 ultimate goal is to boost regional economies. These measures could put Japan on the path to a more modern financial system.

Currently, cryptocurrency investors pay taxes of up to 55% in the miscellaneous income category. Therefore, a 20% tax on crypto profits would match the current tax rate for stock market gains, essentially creating parity between digital assets and traditional financial investments.

Meanwhile, Tamaki noted that the DPP could explore tax reductions on other financial gains in the future, but for now, the focus remains on establishing Japan as a leader in Web3. Translated publication x of the PPD leader x.com/tamakiyuichiro/status/1847959011301441851″ target=”_blank” rel=”noopener” data-wpel-link=”external”>read,

“Anyway, for now we want to make Japan a strong nation in the web3 business.”

crypto Framework Reassessment

cryptopotato recently reported that Japan is looking to review the effectiveness of its cryptoasset regulations in the coming months, which could open the door to cryptocurrency ETFs in the country.

The assessment will evaluate the current regulatory framework established under the Payment Services Act (PSA), which recognizes cryptocurrencies such as bitcoin as legal property and requires cryptocurrency exchanges to comply with anti-money laundering (AML) and counter-financing regulations. terrorism (CFT). At the same time, the Financial Instruments and Exchange Act (FIEA) governs crypto derivatives.

Japan's 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.

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