The crypto industry is buzzing this year, not just because of new memes, coin pumping or Bitcoin leading another bull run. It is now a hotly debated election issue, dividing the electorate and promising to take the industry to new heights. And we’re not just talking about the US elections and Trump’s pro-crypto stance; Digital currencies have spread as an election issue to Japan, where the country will hold its general elections on October 27.
Yuichiro Tamaki, the leader of the People’s Democratic Party (DPP), recently promised this tax cuts and reforms as part of the party’s efforts to strengthen support. Tamaki shared on his official Twitter/X account that his party is pursuing a crypto-friendly tax policy and offering tax cuts of up to 20%.
In a translated X-post, Tamaki said:
“If you believe crypto assets should be taxed separately at 20% rather than treated as miscellaneous income, please vote for the Democratic Party for the People.”
Tamaki puts the Crypto mob on trial ahead of the general election
This year’s elections are crucial for the country, after months of financial scandals and unpopular leaders living the high life. The October 27 elections will take place a year earlier, following the resignation of Prime Minister Fumio Kishida due to low popularity ratings.
(Hope to spread)
The Democratic Party of Japan is proposing clear tax cuts and regulatory reforms regarding crypto assets.If you believe crypto assets should be taxed separately at 20% instead of as miscellaneous income, join the Democratic Party of Japan. There is no tax when exchanging crypto assets.
I would appreciate it if you would spread these promises from the Democratic Party of Japan. … pic.twitter.com/hpbX966yTJ
— Yuichiro Tamaki (National Democratic Party Representative) (@tamakiyuichiro) October 20, 2024
Tamaki’s People’s Democratic Party comes into the election as a clear underdog, as the party controls only seven of the 465 seats in the lower house of the National Assembly. It is therefore 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 policies. Tamaki’s post also includes a link to the party’s official pledge document. He ends the post by thanking supporters for spreading the word about this crypto policy.
Tamaki and DPP’s crypto promise – here’s what to expect
Tamaki’s proposal aims to promote the use of non-fungible tokens (NFTs) in governance and introduce a separate 20% tax on crypto assets. Currently, a tax of 55% is levied on this assetswhich is filed under miscellaneous income. In addition, the policy document contains provisions for loss deductions and tax exemptions on crypto-to-crypto transactions.
Comprehensive taxation is a topic to be considered in the future and is not currently being considered. Anyway, right now I want to make Japan a web3 business powerhouse.
— Yuichiro Tamaki (National Democratic Party Representative) (@tamakiyuichiro) October 20, 2024
The DPP policy document also calls for increasing permitted trading leverage ratios and setting up exchange-traded funds (ETFs). Finally, the party promises to convert the yen into an “electronic currency” and initiate a digital issuance of local currency.
A bumpy road for crypto legislation
Crypto-related policies and promises are gaining popularity in elections, with the US and Japan as examples. While the US gets Trump, who now leads the betting markets, and Elon Musk as a cheerleader, Tamaki’s party faces an uphill battle. Moreover, the current situation in Japan is such that the population is struggling with inflation and taxes.
Tamaki’s post received mixed reactions from users. One user says the country is trying to survive by taxing its people. Others are more supportive of the proposal and say they are happy that it will make filing tax returns easier.
Featured image of Sakuraco, chart from TradingView