Yuichiro Tamaki, leader of Japan’s Democratic Party for the People (DPP), has pledged to lower taxes on cryptocurrency gains if elected. Tamaki’s plan proposes a flat 20% tax on crypto earnings, aligning it with stock market profits, instead of the current system where crypto is taxed as miscellaneous income. He called on voters through a translated X post, saying, “If you think crypto assets should be taxed separately at 20%… please vote for the Democratic Party for the People.”
Key points of the proposal:
- No taxes will be triggered when exchanging one crypto asset for another.
- The plan aims to make Japan a leader in the Web3 space.
- Tamaki’s proposal also supports increasing Japan’s leverage ratio from 2x to 10x and introducing crypto ETFs.
However, DPP faces a tough road ahead, holding only 7 out of 465 seats in the lower house. Japan’s current crypto tax laws impose rates between 15% and 55% based on income, far higher than stock market taxes. While Tamaki’s platform seeks to shift crypto tax policies, a recent opinion survey suggests that the ruling coalition, led by the Liberal Democratic Party, will likely maintain its majority in the upcoming October 27 election.
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