Positioning Cryptocurrencies at the Core of Growth Strategy: Japan's Vision Beyond Breaking Barriers—Exclusive Interview with Yuichiro Tamaki

Summary

1. Position cryptocurrencies at the core of Japan's growth strategy and accelerate tax and regulatory reforms

There is a need to restore the competitiveness of the Japanese market through measures such as the introduction of separate taxation, cryptocurrency ETFs, and a review of leverage regulations. The Web3.0 domain represents a significant growth opportunity for Japan, and advancing regulatory frameworks ahead of schedule is recommended.

2. Attract talent and capital with a 'Japan Project Crypto' and balanced regulations

In response to U.S. national strategies, Japan aims to attract global capital and talent by balancing market transparency with appropriate regulations. In emerging areas like DeFi, it is crucial to avoid excessive regulation that could stifle innovation.

3. Aim for social and political structural reform through blockchain utilization and breaking down 'barriers'

Proposals include on-chain management of public documents and political funds, as well as DAO-like politics (DAPO). Additionally, removing 'disincentive barriers' such as cryptocurrency tax policies and income restrictions is emphasized to transform Japan into a society where challenges and growth are possible.

──Currently, the realization of cryptocurrency tax reforms and the introduction of cryptocurrency ETFs, as pledged by the Democratic Party for the People, is becoming increasingly realistic. How does Representative Tamaki perceive this situation?

Yuichiro Tamaki (hereafter, Tamaki): Firstly, I am pleased that we have a clear outlook on realizing the cryptocurrency tax reforms we pledged. However, given the current schedule, implementation might not occur until around 2028, so I feel we need to expedite the process.

We have advocated for the swift implementation of three key points: the introduction of '20% separate taxation,' the promotion of 'cryptocurrency ETFs,' which are gaining recognition in Japan, and the 'increase of leverage ratios.' I believe the related bills will be passed and enacted, and we will continue to push for implementation by 2027.

Unfortunately, Japan has not established a leading position in the global market in the Web2.0 domain. However, I believe the Web3.0 domain, particularly cryptocurrency-related businesses, is a significant growth area. Therefore, we should develop balanced rules and position them at the center of our growth strategy.

──Regarding the revision of leverage ratios, you propose raising it to '25 times.' What is the intention behind this?

Tamaki: In the past, yen pairs held a high market share in cryptocurrency trading. However, by significantly reducing leverage ratios and imposing strict regulations, talent and business have flowed out of the Japanese market.

Originally, FX was also cautiously regulated, and now leverage can be applied up to 25 times. I believe it is important to relax leverage ratios for cryptocurrencies, assuming proper regulation, and to revitalize the Japanese market, which is why it is included in our pledges.