 in Japan, has promised to reduce the tax on cryptocurrency gains to 20%.){kind=link}
Japan’s crypto taxation might see a huge change in the coming days. If elected, Yuichiro Tamaki, the leader of the Democratic Party for the People (DPP) in Japan, has promised to reduce the tax on cryptocurrency gains to 20%.
At present the taxation on cryptocurrencies can go as high as 55%. However, in an Oct. 20 translated X post, Tamaki stated, “If you think cryptocurrency assets should be taxed separately at 20% instead of treated as miscellaneous income, please vote for the Democratic Party for the People.”
Can Japan See New Crypto Tax Laws?
Though the idea sounds good for the industry, it might still be far from a reality. Tamaki’s DPP only has seven of the 465 seats in the House of Representatives, which is the lower house of Japan.
However, the move can be seen as a significant step to gain support from the crypto industry and stay in tandem with global players like Donald Trump’s election campaign in the US.
The reduction of crypto taxes to 20% will align with the overall tax bracket that is levied on stock gains, instead of the current bracket of miscellaneous gains in Japan.
The nation at present is one of the most crypto-supportive across the globe. However, because of taxes and restrictions on exchange listing, Japan’s cryptocurrency sector is lagging behind other areas’ markets.
Japan’s attitude toward cryptocurrency is well-reflected in the trend of trade volume on exchanges denominated in Japanese yen. Even though there are 29 registered crypto-asset exchanges, Japanese crypto exchanges find it difficult to compete with their foreign counterparts in terms of product offers, which results in lower trading volumes.
Crypto Growth In Japan: What Does The Future Look Like?
By 2030, it is anticipated that Japan’s cryptocurrency wallet business will generate $2,789.4 million in revenue. From 2024 to 2030, the Japan crypto wallet industry is projected to develop at a compound annual growth rate of 25.5%.
On the other hand, the current year will see the Japanese cryptocurrency sector generating $1,376.0 million in sales, according to research by Statista. During the same period, the average revenue per user in Japan’s cryptocurrency sector is expected to be over US$71.3.
By 2025, it is anticipated that the user penetration rate will have increased to 15.93% from its estimated 15.76% in 2024. Because of its liberal regulatory framework, Japan has become a hub for the development and use of cryptocurrencies, and many big businesses and stores now accept them as payment.