Japan’s ruling party has drafted a proposal to lower the crypto tax rate from the current maximum of 55% to 20% and is currently seeking public feedback.
The Liberal Democratic Party (LDP) released a draft of regulatory reform on Thursday, aiming to classify cryptocurrency as a new asset class under the Financial Instruments and Exchange Act, according to a post by Akihisa Shiozaki, a member of Japan’s House of Representatives, on X.
The proposed regulatory change seeks to reclassify cryptocurrencies from the Payment Services Act to the Financial Instruments and Exchange Act.
This reclassification would designate cryptocurrencies as “financial products” and apply a separate 20% tax rate similar to the rate for securities investments.
