In Japan, it is election campaign time, and Yuichiro Tamaki of the Democratic Party for the People (DPP) has promised a tax cut on crypto. Here are the details.
Japan: Yuichiro Tamaki of the DDP promises tax cuts on crypto
Yuichiro Tamaki, leader of the Democratic Party for the People (DPP) in Japan, has promised a tax cut on crypto in his election campaign.
In his post on X translated, Tamaki writes:
“Spread the news: The Democratic Party for the People of Japan (DDP) is the one that proposed a clear tax reduction and a regulatory reform on crypto assets. If you think that cryptocurrencies should be taxed with a separate rate of 20% instead of miscellaneous income, join the DDP. No tax is imposed on crypto assets when they are exchanged between crypto assets. We would be grateful if you could spread these commitments of the Democratic Party for the People of Japan.”
In practice, if Tamaki were to win the elections, he would bring his proposal for a different tax plan for cryptocurrencies to life. Specifically, Tamaki proposes support for the token economy using crypto resources, with the goal of promoting NFT and Web3 also in the tax system.
In this regard, the leader of the Japanese DPP would like to replace the current plan that taxes crypto as virtual income, instead applying a separate 20% tax and a loss carryforward deduction (3 years).
Tamaki adds that there will be no more taxes on crypto trading and that it will be possible to increase the leverage ratio from 2x to 10x. Not only that, Tamaki is inclined to introduce crypto spot ETFs in Japan.
At the local level, then, the leader of the DPP wants to encourage governments to issue digital community currencies capable of contributing to the revitalization of local economies.
Japan and the elections: Tamaki of the DPP wants to cut taxes on crypto
While the promises of the DDP seem like a dream for the crypto community, the reality is that in Japan the party is not so supported.
The next elections in Japan are scheduled for October 27, and, currently, Tamaki’s DPP holds only 7 of the 465 seats in the Japanese House of Representatives.
According to the polls, then, the DPP of Tamaki could see its representation increase from 7 to 20 seats, but without a win in the elections. In fact, it seems that the majority will be maintained by the Liberal Democratic Party (LDP) and its coalition partner Komeito.
In any case, in addition to the tax cut on crypto, the main promise of the DPP to voters concerns the increase in salary to combat inflation. Nevertheless, Tamaki is convinced of wanting to make Japan a leader in the Web3 space.
The increase of institutional investors in crypto
Tamaki’s strategy of promising something in favor of the cryptocurrency sector should not be underestimated.
In fact, in Japan, it seems that in the coming years there could be a real growth of institutional investors in the crypto sector.
To say it, it was last June 2024 the report by Nomura which, with its survey, highlighted that for 54% of the Japanese institutional investors interviewed, there is interest in becoming “crypto investors”.
The survey had involved more than 500 investment managers in Japan, and had shown that 62% of respondents consider crypto as a diversification opportunity.
Speaking instead of “Bitcoin accumulators” in the style of MicroStrategy in the USA, in Japan there is the Tokyo company Metaplanet that, in July 2024, had a reserve of 225.61 BTC.