The crypto industry is buzzing this year, not just because of new memes, coin upgrades, or Bitcoin leading the charge again. Today, it is a hotly debated election issue, dividing voters and promising to take the industry to new heights. And we’re not just talking about the US election and Trump’s pro-crypto stance; Digital currency as an election issue has expanded to Japan, where the country is scheduled to hold general elections this October 27.
Yuichiro Tamaki, leader of the Democratic Party for the People (DPP), recently promised tax cuts and reforms as part of the party’s efforts to rally support. Posting on his official Twitter/X account, Tamaki shared that his party is implementing a crypto-friendly tax policy, offering tax cuts of up to 20%.
In X’s translated post, Tamaki said:
“If you think crypto assets should be taxed separately at 20% rather than treated as miscellaneous income, please vote for the Democratic Party for the People.”
Tamaki Engages Crypto Crowd Ahead of General Election
This year’s election is crucial for the country after months of financial scandals and an unpopular leader living the good life. The October 27 election will be held a year early, following the resignation of Prime Minister Fumio Kishida due to low levels of support.
[Harapan untuk menyebar]
The Democratic Party of Japan proposes clear tax cuts and regulatory reforms regarding crypto assets.If you think crypto assets should be taxed separately at 20% and not as miscellaneous income, please join the Democratic Party of Japan. There are no taxes when exchanging crypto assets.
I would really appreciate it if you would share these promises of the Democratic Party of Japan. … pic.twitter.com/hpbX966yTJ
— Tamaki Yuichiro (National Democratic Party Representative) (@tamakiyuichiro) October 20, 2024
The Democratic Party for the People led by Tamaki appeared in the election as an underdog, because the party only controlled seven of the 465 seats in the lower house of the National Diet. Therefore, it is not surprising that the party is taking bold initiatives to attract as many voters as possible to the party.
In the same Twitter/X post, Tamaki asked his followers to vote for the party and spread the word about their proposed tax policy. Additionally, Tamaki’s post also included a link to the party’s official pledge document. He ended his post by thanking supporters for spreading the word about this crypto policy.
Tamaki and DPP Crypto Promises – Here’s What to Expect
Tamaki’s proposal aims to promote the use of non-fungible tokens (NFTs) in governance and implement a separate 20% tax on crypto assets. Currently, there is a 55% tax on these assets, which is recorded in other income. Additionally, the policy paper includes loss mitigation allowances and tax exemptions on crypto-to-crypto transactions.
Comprehensive taxation is an issue that needs to be considered in the future and is not currently being considered. Anyway, right now, I want to make Japan a web3 business center.
— Tamaki Yuichiro (National Democratic Party Representative) (@tamakiyuichiro) October 20, 2024
The DPP policy paper also calls for increasing the level of leverage allowed for trading and the creation of exchange-traded funds (ETFs). Lastly, the party promised to convert the yen into an ‘electronic currency’ and begin the issuance of a digital local currency.
A Bumpy Road Ahead For Crypto Legislation
Crypto-related policies and promises are gaining traction in elections, with the United States and Japan as examples. While the US got Trump, who now leads the betting market, and Elon Musk as a cheerleader, Tamaki’s party faces an uphill battle. Apart from that, the current situation in Japan is that the people are struggling against inflation and taxation.
Tamaki’s post received mixed responses from users. One user said his country was trying to survive by taxing its people. Others were more supportive of the proposal and said they were pleased that tax reporting would become easier.
Featured image from Sakuraco, chart from TradingView
