To seek votes before Oct. 27 national elections, Democratic Party for the People leader Yuichiro Tamaki is “proposing clear tax cuts and regulatory reforms regarding cryptocurrencies”.

Choose the Democratic Party for the People if you think crypto assets should be taxed at 20% instead of miscellaneous income. He said on X on Oct. 20 that bitcoin exchanges will be tax-free.

The DPFP, which has seven Diet seats, supports crypto exchange-traded funds, exchanging the yen for an electronic currency, and local governments creating “digital regional currencies” to promote local economies.

The country's crypto tax policy has long been challenged by investors. The current system taxes crypto revenues as income, thus top earners above 40,000,000 yen ($265,000) may pay 45%. Capital gains from shares are 20% taxed.

Other politicians seek to modify this policy besides Tamaki. Japan has reviewed crypto tax laws for two years. Last year, the government said crypto holders would no longer pay taxes on unrealized earnings, and a September Financial Services Agency policy statement urged assessing crypto assets as financial assets.
After the Sunday general election campaign financing scandal, Liberal Democratic Party leader Shigeru Ishiba, who became prime minister in September, wants to extend his influence. His predecessor, Fumio Kishida, labeled web3 “new form of capitalism”.

The Liberal Democrats released a web3 and blockchain white paper in April. In October, Masaaki Taira became Minister for Digital Transformation, promoting cryptocurrency tax reform and web3 and blockchain. He stated Japan's gaming and web3 game industries may grow.

The second-largest Japanese party, the Constitutional Democratic Party, will assess the crypto tax system, which it relates to web3 development. Legalizing DAOs clarifies their status and member and participation obligations.

The party will study CBDCs, including Bank of Japan trial projects, to diversify payment methods and save costs.

Note:Tax Tax everywhere