Japan’s ruling Liberal Democratic Party (LDP) has proposed a draft to reduce the crypto tax rate from a maximum of 55% to 20%

Japan’s ruling Liberal Democratic Party (LDP) has proposed a draft regulatory reform, proposing to move cryptocurrency from the Payment Services Act to the Financial Instruments Exchange Act. As a new asset class for financial products, the tax rate will be reduced from a maximum of 55% to 20%, in line with the securities investment tax rate. Akihisa Shiozaki, head of the Liberal Democratic Party’s Web3 Working Group, said the move aims to develop the market, protect investors and tax crypto earnings separately, or pave the way for Japan to launch spot crypto ETFs. Currently, Japan treats cryptocurrencies as miscellaneous income with a tax rate of up to 55%. The draft was publicly solicited until March 31, and then submitted to the Financial Services Department. (TheBlock) 

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