Japan's finance minister has expressed support for cryptocurrencies as a tool for portfolio diversification, while the Liberal Democratic Party (LDP) prepares a series of reforms.
Minister's Position
Japanese Finance Minister Katsunobu Kato stated that cryptocurrencies could be part of diversified investments within a proper framework. Although this new asset class remains quite volatile, the government aims to create suitable trading conditions for cryptocurrencies.
LDP's Crypto Reform
The Liberal Democratic Party, which governs Japan, has already pledged to introduce important reforms regarding cryptocurrencies. The party plans to move digital assets to a separate flat tax regime (approximately 20%). Currently, individual cryptocurrency gains are taxed at rates up to 55%. This change could significantly impact the local cryptocurrency market. Additionally, the LDP aims to introduce rules akin to insider trading prohibitions for cryptocurrencies, preventing the exploitation of insider information.
Metaplanet in FTSE Japan
Meanwhile, Metaplanet, Japan's largest corporate holder of Bitcoin, has recently been added to the FTSE Japan Index, representing large and mid-cap equities from the country. CEO Simon Gerovich announced the purchase of an additional $11.7 million in BTC, bringing the company's total holdings to nearly $2 billion.
The Japanese government's stance on cryptocurrencies and the LDP's reform intentions could significantly influence the future of crypto investments in the country.
