Japan's opposition leader Yuichiro Tamaki is strongly advocating for cryptocurrency tax reforms ahead of the upcoming October 27 elections.

Overview of Proposed Reforms

Yuichiro Tamaki's program highlights several key proposals, including the abolition of taxes on crypto-to-crypto transactions, which he believes will support a burgeoning token economy centered around Web3 and NFTs. His plan also includes raising the leverage ratio from 2x to 10x and introducing cryptocurrency ETFs to the Japanese market.

Current Tax Situation in Japan

Currently, in Japan, crypto profits are taxed as miscellaneous income, with rates ranging from 15% to 55% based on income levels. High earners, making over ¥40 million (about $268,000), can face the top tax rate of 55%. Corporate cryptocurrency holders are taxed at a flat rate of 30%, even if no profits have been realized through sales.

Opinions and Politician Comments

In addition to Tamaki, other Japanese politicians, such as Shun Otokita of the Japan Innovation Party, have voiced concerns over the country’s crypto tax policies. Private sector organizations have similarly pressed the government for reform to create a more competitive environment for crypto investors and businesses. Japan’s Financial Services Agency plans a comprehensive overhaul of the crypto tax code by fiscal year 2025.

Japan's tax reform plans might reduce the tax burden on digital assets and address issues surrounding customer protection amid increasing fraud and illegal fund transfers.