The road to separate taxation of crypto assets: what are the key issues in the increasingly serious debate?

One of the most important points of interest for users is whether separate taxation of crypto assets will be realized. If separate taxation is realized, crypto asset income will not be added to other income, a flat tax rate will be applied instead of a progressive tax rate, and loss carryover deductions may be allowed, so it will be a more favorable system than the current tax system for users who earn relatively large amounts of income.

In April 2024, the Liberal Democratic Party Digital Society Promotion Headquarters web3 Project Team published the "web3 White Paper 2024," which recommended that profits and losses arising from cryptocurrency transactions should be subject to separate self-reporting taxation at a 20% tax rate and that losses on cryptocurrency should be allowed to be carried forward from income (for three years from the following year).