Japan’s Democratic Party leader vows crypto tax cut to 20% if elected

As a seasoned crypto investor with a keen eye for political and economic shifts, I find the recent promises by various Japanese political parties intriguing. Being someone who has navigated the complex world of digital assets, I can appreciate the potential impact these proposals could have on my investments.


If elected, the head of Japan’s Democratic Party for the People, Yuichiro Tamaki, proposes reducing the tax on cryptocurrencies to 20%, alongside various other policies concerning digital assets, should his party take office.

On October 21st, Yuichiro Tamaki, head of the Democratic Party for the People in Japan, published a post outlining his party’s proposed cryptocurrency policies. If elected, Tamaki plans to reduce the tax rate on crypto gains to 20%.

If you believe that crypto assets should have a separate 20% tax rate rather than being classified as miscellaneous income, consider voting for the Democratic Party of the People. It’s important to note that there will be no tax incurred when exchanging one cryptocurrency for another.

As per the existing Japanese tax laws, cryptocurrencies fall under the category of “other income,” potentially leading to a maximum tax rate of 55%, contingent upon one’s individual earnings. In contrast, profits gained from stock trades are capped at a top tax bracket of 20%.

In the policy declaration of the DPP, a significant aspect is their commitment to fostering an economy based on tokens through the use of cryptographic assets. They pledge to leverage both Non-Fungible Tokens (NFTs) and cryptocurrencies to stimulate economic growth in Japan.

In response to a user’s query, Tamaki stated, “For the time being, our goal is to strengthen Japan’s presence in the web3 sector.

According to the policy statement, the Digital Property Protection (DPP) suggests a 20% tax on gains made from cryptocurrencies, equating it with taxation on profits from traditional stock markets. Consequently, in Tamaki’s proposed plan, no taxable event would occur when trading crypto assets.

Besides reducing crypto taxes, the Democratic Progressive Party proposes boosting the leverage multiplier from 2x to 10x and introducing exchange-traded funds based on cryptocurrencies. Additionally, they intend to transform the Japanese Yen into a digital currency.

The Democratic Party of Japan has proposed encouraging local governments to introduce digital currencies, functioning as cryptocurrencies, to stimulate economic growth within their regions,” is a possible paraphrase for the original statement.

Based on a recent survey conducted by the Japanese media outlet Mainichi, it appears that the Democratic Party of Japan is unlikely to secure victory in Japan’s upcoming election.

As an analyst, I find myself observing that the Liberal Democratic Party (LDP) and its alliance partner, Komeito, currently hold a substantial lead in terms of votes, positioning them to maintain a majority. Conversely, the Democratic Party of Japan (DPP) appears poised for growth, potentially expanding its representation from seven seats to as many as 20.

On October 1st, Shigeru Ishiba, the President of the Liberal Democratic Party and current Prime Minister of Japan, declared his plans to leverage blockchain technology and Non-Fungible Tokens (NFTs) to bolster Japan’s economy. His strategy involves revaluing local assets such as food and tourism on a global scale to increase their worth.

Additionally, Masaaki Taira, head of the LDP’s Web3 initiative and Minister of Digital Affairs, has put forward a strategy aimed at integrating various experiences and utilizing Japanese intellectual property regulations for NFTs. Furthermore, he proposed steps to stimulate crypto startups by revising Japan’s tax structure.

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2024-10-21 13:44