The cryptocurrency industry is buzzing this year, not only because of fresh memes, coin pumping or Bitcoin leading another bull market. It is currently a hotly debated electoral issue, dividing the electorate and promising to take the industry to fresh heights. And we’re not just talking about the US elections and Trump’s pro-crypto-fundamental position; digital currency as an electoral issue has spread to Japan, where a general election is scheduled for October 27.

This was recently promised by Yuichiro Tamaki, leader of the Democratic People’s Party (DPP). tax cuts and reforms as part of the party’s efforts to boost support. In a post on his official Twitter/X account, Tamaki shared that his party pursues a cryptocurrency-friendly tax policy, offering tax cuts of up to 20%.

In a translated post on X, Tamaki said:

“If you believe crypto assets should be taxed separately at 20% and not treated as other income, vote for the People’s Democratic Party.”

Tamaki judges the cryptocurrency crowd 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 elections scheduled for October 27 will be held a year earlier following the resignation of Prime Minister Fumio Kishida due to low support.

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The Democratic Party of Japan proposes clear tax cuts and regulatory reforms for crypto assets.

If you believe that crypto assets should be taxed separately at 20% and not as other income, join the Democratic Party of Japan. There is no tax when exchanging crypto assets.

I would be grateful if you would spread the word about the promises of the Democratic Party of Japan. … pic.twitter.com/hpbX966yTJ

— Yuichiro Tamaki (Representative of the National Democratic Party) (@tamakiyuichiro) October 20, 2024

Tamaki’s People’s Democratic Party will enter the elections at a distinct disadvantage as the party controls only seven of the 465 seats in the lower house of the National Diet. It is therefore not surprising that the party undertakes bold initiatives aimed at attracting 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 its proposed tax policies. Tamaki’s post also includes a link to the party’s official pledge document. He ends the post by thanking followers for spreading the word about this crypto policy.

Tamaki and DPP’s Crypto Pledge – Here’s What to Expect

Tamaki’s proposal aims to promote the operate of non-fungible tokens (NFTs) in governance and implement a separate 20% tax on crypto assets. Currently, there is a 55% tax on them assetswhich is reported under miscellaneous income. In addition, the policy document includes relief for loss deductions and exemption of cryptographic transactions from taxes.

Comprehensive taxation is an issue for future consideration and is not currently under consideration. Anyway, 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 an augment in permitted leverage rates for trading and the creation of exchange-traded funds (ETFs). Finally, the party promises to convert the yen into an “electronic currency” and initiate the issuance of a digital local currency.

A bumpy road ahead for cryptocurrency regulations

Cryptocurrency policies and promises are gaining traction in elections, with the United States and Japan being examples of this. While the US gets Trump, who is currently the leader in the betting market, and Elon Musk as a cheerleader, Tamaki’s party faces an uphill battle. Moreover, the current situation in Japan is such that its people are struggling with inflation and taxes.

Tamaki’s post received mixed responses from users. One user claims that the country tries to survive by taxing its citizens. Others are more supportive of the proposal, saying they are glad it will make filing taxes easier.

Featured image from Sakuraco, chart from TradingView