Japan’s DPP promises 20% crypto tax if elected

Japan’s Democratic Party for the People (DPP), led by Yuichiro Tamaki, has announced a plan to lower the tax on cryptocurrency gains to 20% if elected. In a recent post on X, Tamaki outlined that crypto assets should be taxed separately, contrasting the current regime where gains can be taxed up to 55% as ‘miscellaneous income.’ The DPP aims to treat digital assets similarly to stock market profits, which are taxed at a maximum of 20%.

The party’s proposals also include measures to enhance the token economy in Japan, promoting the use of non-fungible tokens and cryptocurrencies to invigorate the economy. Tamaki indicated that trading crypto assets would not incur tax liabilities under their plan, emphasising the need to foster a robust web3 business environment in Japan.

Additionally, the DPP intends to introduce cryptocurrency exchange-traded funds and enhance leverage in trading from two-fold to ten-fold. The proposal includes the introduction of digital regional currencies by local governments to stimulate local economies. Despite these ambitious plans, recent surveys suggest that the DPP may struggle to gain traction in the upcoming elections, as the ruling Liberal Democratic Party maintains a strong lead in voter support.