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Japan’s cryptocurrency industry could soon be looking at a brighter future, as a key political leader has pledged to slash taxes on crypto assets. 

Yuichiro Tamaki, leader of the opposition party Democratic Party for the People (DPP), is advocating for a substantial reduction in Japan's crypto tax rate to 20%.

In an X social media post, Tamaki underscored the importance of a friendlier tax regime to foster growth in the crypto sector. He argued that the current tax rate—up to 55% for gains on digital assets—discourages innovation and drives entrepreneurs out of Japan, adding that reducing the rate to 20% would align the country with other crypto-friendly jurisdictions. 

“Crypto taxes are too high,” Tamaki stated in an X (formerly Twitter) post. “By lowering them, we can incentivize investment and innovation, helping Japan become a leader in the global digital economy.”

By contrast, Tamaki’s 20% flat tax proposal would apply to crypto profits, mirroring the tax treatment of stocks and other financial investments.

Tamaki’s proposal isn’t just about tax relief; it’s about positioning Japan for long-term success in a digital-first world. With competition heating up globally, Japan’s ability to attract and retain blockchain talent will be crucial for its future economic growth. 

As the 2024 general election approaches, Tamaki’s stance on crypto could make waves, particularly among younger, tech-savvy voters who see blockchain as the foundation for the next generation of the internet.

The coming months will reveal whether Tamaki’s crypto tax reform can gain traction with other lawmakers, but one thing is clear: Japan’s political landscape is evolving, and cryptocurrency is taking center stage.