Japan’s ruling Liberal Democratic Party is pushing for major crypto tax reform, reducing tax rates from 55% to 20%.
LDP Proposes Crypto Tax Cuts
Japan’s ruling Liberal Democratic Party (LDP) has proposed a significant reduction in the tax rate on crypto gains in an effort to overhaul its crypto tax regime. In a draft released Thursday, LDP lawmaker Akihisa Shiozaki introduced a plan to reduce the tax rate on crypto gains from 55% to 20%.New Classification for Crypto Assets
The proposal seeks to reclassify crypto as a distinct asset class under the Financial Instruments and Exchange Act, potentially offering clearer tax rules and more tailored regulations for the crypto industry.Public Feedback and Next Steps
The LDP is now collecting public feedback on the proposal until March 31 before submitting it to the Financial Services Agency (FSA) for further review. The FSA is also considering lifting the long-standing ban on crypto ETFs, with discussions expected to continue through 2025 before a legislative proposal is submitted in 2026.
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