In an X post on October 21, Japanese politician and People’s Democratic Party leader Yuichiro Tamaki shared the party’s proposed policies regarding cryptocurrency in Japan. The DPP leader suggested they would reduce crypto earnings to 20% if elected.

“If you want crypto assets to be taxed separately at 20% and not as a different form of income, vote for the People’s Democratic Party. There will be no tax when exchanging crypto assets for other crypto assets,” Tamaki wrote.

Under Japan’s current regulations, crypto falls into the “miscellaneous income” category, meaning Japan’s crypto tax can be as high as 55% depending on personal income. Meanwhile, gains from stock trading are subject to a maximum tax rate of 20%.

In the DPP’s policy statement, one of the main clauses is “supporting the token economy using crypto assets”. The party promises to use both non-fungible tokens (NFT) and cryptocurrencies to stimulate Japan’s economy.

“For now, we want to make Japan a strong country in the web3 business,” Tamaki said on X in response to a user’s question.

In its policy statement, the DPP proposes to tax crypto gains at 20%, putting digital assets at the same level as gains in the exchange market. Therefore, according to Tamaki’s plan, there will be no tax events in crypto asset trading. In addition to reducing the crypto tax, the DPP also promises to increase the leverage multiplier from twofold to tenfold and introduce cryptocurrency exchange-traded funds (ETFs). They also plan to convert Japan’s yen into an electronic currency.

“Encourage the issuance of ‘digital regional currencies’ (provisional name) as crypto assets by local governments, which will help stimulate local economies,” the DPP stated.

According to a poll by Japanese media outlet Mainichi, the DPP’s chances of winning Japan’s elections are slim.

The Liberal Democratic Party and its coalition partner Komeito are leading, holding the majority of votes. Meanwhile, the DPP’s representation is expected to increase from seven seats to 20 seats.

Following his victory on October 1, Liberal Democratic Party Chairman and Japan’s current Prime Minister Shigeru Ishiba announced in his policy document that he is considering using blockchain technology and NFTs to strengthen Japan’s economy by revaluing local assets such as food and tourism on a global scale.

Additionally, Masaaki Taira, the current chairman of the LDP’s Web3 task force and Minister of Digital Affairs, presented a plan that proposes to bring together various experiences and apply Japanese intellectual property laws to NFTs. He also proposed measures to encourage crypto startups by reforming Japan’s tax system.