[NEWS] Yuichiro Tamaki, CEO, requests review of tax system regarding crypto assets

Yuichiro Tamaki, the leader of the Democratic Party for the People, requested that the review of the tax system and regulations regarding crypto assets be discussed in the LDP presidential election.

The LDP presidential election is likely to focus on financial asset taxation, and in a post on X, he requested that the discussion on the review of the tax system and regulations regarding crypto assets be included in the discussion.

Currently, the number of cryptocurrency accounts in Japan has exceeded 10 million. The balance of users' deposits at cryptocurrency exchanges has also exceeded 3 trillion yen.

The introduction of an appropriate policy package is expected to further expand the cryptocurrency market.

Tamaki announced the following policy proposal:"① Instead of treating cryptocurrency as miscellaneous income taxed at up to 55%, apply 20% separate taxation like other financial income, apply loss carryover deduction (for 3 years), ② do not tax cryptocurrency when exchanging cryptocurrency with other cryptocurrency, ③ increase leverage ratio from 2x to 10x (5x for individuals), ④ introduce cryptocurrency ETF."

In 2017, 50% of the world's bitcoin trading volume was conducted in Japan. However, since then, due to the frequent occurrence of cryptocurrency incidents such as the Coincheck hacking incident and the tightening of regulations on leverage ratio from 25x to 2x, Japan's share of global trading volume has dropped sharply to 1-3%.

Tamaki claims that by quickly introducing the policy package he proposed, it will be possible to return the Japanese market to 10-15% of the world's total.

As a result, he argued, there is a possibility of increasing assets to the tens of trillions of yen in Japan, which will result in much larger tax revenues than those currently obtained from cryptocurrency tax. 

In order to eliminate Japan's "digital trade deficit" of over 5 trillion yen per year, he said that now is the time to utilize Web 3.0 and cryptocurrency businesses.

Cryptocurrency in the party's manifesto

The Democratic Party for the People will include policies regarding cryptocurrency in its manifesto for the next House of Representatives election,"I ask all crypto-related parties to support us," he said.

Tamaki said, "The Democratic Party for the People will support the cryptocurrency industry." It is as if they are trying to do the same thing as Donald Trump said he would support the cryptocurrency industry in the US presidential election and received support from the industry.

This move is a new one in which cryptocurrency cannot be ignored in Japanese politics. It will be the first time in Japan to include cryptocurrency support in a party's manifesto. 

When Tamaki met with Prime Minister Fumio Kishida in May 2022, he also requested tax reform related to cryptocurrency. When he asked for the establishment of a tax system in the Web 3.0 area, Prime Minister Kishida said, "Let's do Web 3.0." He argued that by making it a separate tax, it would be possible to prevent human resources and businesses in the Web 3.0 area from leaking overseas.

Reference: Representative Tamaki
Image: Shutterstock

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