This year, the cryptocurrency sector is generating considerable excitement, not only due to fresh memes, skyrocketing coin prices, or Bitcoin spearheading yet another bull rush. It’s now a pivotal subject in the electoral arena, splitting public opinion and hinting at a bright future for the industry. The discussion isn’t confined to the US elections and Trump’s favorable view on crypto; the topic has also gained traction in Japan, where general elections are set for October 27th.
Yuichiro Tamaki, the head of the Democratic Party for the People (DPP), has recently pledged tax reductions and reforms to bolster his party’s support. On his official Twitter/X account, Tamaki announced that the DPP is advocating for tax policies that are conducive to cryptocurrencies, proposing cuts of up to 20%.
In a translated post on X, Tamaki stated:
“If you believe that crypto assets should be taxed separately at 20% instead of as miscellaneous income, please cast your vote for the Democratic Party for the People.”
Tamaki Appeals To The Crypto Community Ahead Of General Elections
The upcoming elections are vital for Japan following a series of financial scandals and the public’s discontent with leaders living lavishly. The elections on October 27th have been scheduled a year earlier due to Prime Minister Fumio Kishida’s resignation amid plummeting approval ratings.
【拡散希望】
暗号資産に関して明確な減税&規制改革を打ち出しているのが国民民主党です。暗号資産を雑所得ではなく分離課税20%にすべきと考える人は国民民主党に入れてください。暗号資産同士の交換時には税金をかけません。
こうした国民民主党の公約を拡散していただければ幸いです。… pic.twitter.com/hpbX966yTJ
— 玉木雄一郎（国民民主党代表） (@tamakiyuichiro) October 20, 2024
The DPP enters the elections significantly trailing behind, holding only seven out of 465 seats in the National Diet’s lower house. Thus, it makes sense that the party is initiating bold strategies to entice as many voters as they can.
In his recent Twitter/X post, Tamaki encouraged his followers to support the party and share information about their proposed tax policies. He also included a link to the party’s official manifesto and thanked supporters for helping spread awareness about their crypto initiatives.
Tamaki And DPP’s Crypto Commitments – What To Anticipate
Tamaki’s initiative seeks to advance the use of non-fungible tokens (NFTs) within governance structures and to impose a distinct 20% tax on crypto assets. Presently, these assets are taxed at 55% as miscellaneous income. Additionally, the policy proposal includes provisions for loss deductions and exempts crypto-to-crypto transactions from taxation.
総合課税化は将来的な検討課題で今は考えていません。とにかく今は、日本をweb3ビジネス強国にしたいと考えています。
— 玉木雄一郎（国民民主党代表） (@tamakiyuichiro) October 20, 2024
The DPP’s policy document also advocates for increased permissible leverage ratios for trading and the establishment of exchange-traded funds (ETFs). Lastly, the party commits to transforming the yen into an ‘electronic currency’ and to launching a digital local currency.
Challenging Path Ahead For Crypto Regulations
Crypto-related propositions are gaining momentum in electoral races, with the US and Japan serving as key illustrations. While Trump leads in betting markets and Elon Musk plays the role of enthusiast, Tamaki’s party encounters significant hurdles. Additionally, the current climate in Japan shows that citizens are grappling with inflation and taxation issues.
Responses to Tamaki’s post were mixed, with some users questioning the country’s reliance on taxing its citizens for survival. Conversely, others expressed support for the proposal, noting the potential for simplified tax filings.
Featured image from Sakuraco, chart from TradingView
