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Crypto Tax Reform On The Horizon? Japan’s Tamaki Pledges Change If Elected

  • October 21, 2024
  • Posted by: admin
  • Category: BitCoin, Blockchain, Cryptocurrency, Investments
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The crypto industry is buzzing this year, not just because of new memes, coin pumping, or Bitcoin leading another bull run. It’s now a hotly debated election issue, dividing the electorate and promising to bring the industry to new heights. And we’re not just talking about the US elections and Trump’s pro-crypto stance; digital currency as an election issue has spilled over to Japan, where it’s scheduled to hold its general elections this October 27th.

Yuichiro Tamaki, the leader of the Democratic Party for the People (DPP), has recently promised tax cuts and reforms as part of the party’s efforts to shore up support. Posting on his official Twitter/X account, Tamaki shared that his party is pursuing crypto-friendly tax policies, offering tax cuts of up to 20%.

In a translated X post, Tamaki said:

“If you think crypto assets should be taxed separately at 20% instead of treated as miscellaneous income, please vote for the Democratic Party for the People.”

Tamaki Courts The Crypto Crowd Ahead Of General Elections

This year’s elections are crucial for the country after months of financial scandals and unpopular leaders living the good life. The October 27th elections will take place a year early, following Prime Minister Fumio Kishida’s resignation over low approval ratings.

Tamaki’s Democratic Party for the People comes into the elections as a clear underdog, as the party controls only seven of the 465 seats in the lower house of the National Diet. So, it isn’t surprising that the party is taking on bold initiatives to attract as many voters as possible to the party.

In the same Twitter/X post, Tamaki asked its followers to vote for the party and spread the word about their proposed tax policies. Also, Tamaki’s post includes a link to the party’s official pledge document. He ends the post by thanking the supporters for spreading the word about this crypto policy.

Tamaki And DPP’s Crypto Pledge – Here’s What To Expect

Tamaki’s proposal aims to promote the use of non-fungible tokens (NFTs) in governance and implement a separate 20% tax on crypto assets. Currently, there is a 55% tax on such assets, which is filed under miscellaneous income. In addition, the policy paper includes allowances for loss deductions and exemption of crypto-to-crypto transactions from taxes.

DPP’s policy paper also calls for increasing the allowable leverage rates for trading and establishing exchange-traded funds (ETFs). Finally, the party promises to convert the yen into an ‘electronic currency’ and initiate a digital local currency issuance.

Bumpy Road Ahead For Crypto Legislations

Crypto-related policies and promises are gaining traction in elections, with the US and Japan as examples. While the US gets Trump, who’s now leading in betting markets, and Elon Musk as a cheerleader, Tamaki’s party faces an uphill battle. Also, the current situation in Japan is that its people are struggling with inflation and taxation.

Tamaki’s post got mixed replies from users. One user says the country is trying to survive by taxing its people. Others are more supportive of the proposal, saying they’re happy that filing tax returns will become easier.

Featured image from Sakuraco, chart from TradingView

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