As of September 27, 2024, Liberal Democratic Party member Shigeru Ishiba has been voted the next prime minister of Japan. Ishiba's former role as defense minister and his affinity for taxes and revving the money printer might be problematic for crypto enthusiasts.
Ishiba's Political Plans
Ishiba, a former defense minister and member of the LDP, will succeed Fumio Kishida as the Prime Minister of Japan on October 1. His main goals are to increase taxes on investments and income and to bolster military power. Ishiba aims to strengthen income and investment taxes, exempting those who invest through state-approved programs such as NISA. 'I have no intention whatsoever of raising taxes on those who have increased their income through the new NISA,' Ishiba noted.
Impact on the Crypto Market
Tokyo and Japan, in general, represent a curious juxtaposition of forces when it comes to cryptocurrency. While Satoshi Nakamoto's vision of P2P electronic cash thrives in trading groups and local businesses, the government has been criticised for high taxes on crypto assets and the ban on privacy coins on exchanges. With Ishiba's new tax plans, these regulations may only intensify. One X user wondered aloud: 'Will the [talk of tax easing for crypto] go ahead if Ishiba is the president?'
Militarism and Economic Policy
Unlike his predecessor Kishida, Ishiba is focused on the traditional economy and defense-related matters. He is known for demanding severe punishment for military defectors and supporting the formation of an Asian version of NATO. Closer ties with the U.S. and conflicts in the Middle East could significantly affect the market. Stricter KYC policies might also be implemented due to threats from groups like the 'Lazarus Group'. Ishiba's fiscal policy remains unclear; he favors accommodative monetary policy from the Bank of Japan, which may not result in significant economic changes for Japan.
Shigeru Ishiba's appointment as Japan's Prime Minister raises many questions about the future of cryptocurrencies in the country. With his plans for tax hikes and increased military spending, crypto enthusiasts should brace for potential regulatory and tax policy changes.
