Japan’s Democratic Party for the People (DPP) leader, Yuichiro Tamaki, plans to cut crypto taxes if elected. He aims to reduce the tax on cryptocurrency gains to 20%.
Tamaki announced this on X, urging people to vote for his party. His proposal includes no tax when swapping one crypto asset for another.
Japan is also reviewing its crypto rules. In September, reports confirmed that the Financial Services Agency (FSA) would examine the current regulations.
This change in the rules might bring the digital asset taxes down. The FSA is going to explore the possibilities of indicating whether the reclassification of crypto as securities would offer a better environment for the development of the industry than the security tokenization model.
The proposed reforms would lower crypto taxes from 55% to 20%. Yuya Hasegawa from bitbank Inc. believes these changes could allow the launch of crypto-based ETFs. The review could lead to new opportunities for investors and exchanges.
Historical incidents shaping Japan’s strict crypto regulations
Japan’s strict crypto regulations stem from past incidents like the 2014 Mt. Gox hack. Other platforms, such as DMM Bitcoin, have also faced issues, with a $320 million breach earlier this year.
On the contrary, Sony and Mitsubishi UFJ Financial Group are taking a look at blockchain technology despite the hurdles that they may have had to face. The idea that Mitsubishi might introduce stablecoins in compliance with the existing laws has been in the news since 2023.
Japan’s digital assets trading has increased so much this year that the volume was $10 billion by August. This is a sign of the interest of people in the digital asset market in their country.
Tamaki’s proposal and the Japanese government’s review could significantly alter Japan’s crypto space. The outcome of the review will probably be the main factor in deciding which way Japan’s digital assets market will go
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