Lawmakers Defend Government Policies
Also attending the session were two key Liberal Democratic Party (LDP) lawmakers: the web3 project team chair Masaaki Taira and the LDP Financial Research Committee Secretary-General Takao Ochi.
先週のweb3コンファレンス"WebX2024"
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紹介して頂きましたhttps://t.co/knKOTRWBN4
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ぜひご覧に下さい！— おちたかお(越智隆雄)【東京6区】 (@ochitakao) September 3, 2024
The LDP is Japan’s ruling political party. Oda quizzed the lawmakers on the government’s response to Japan’s dwindling influence on the global crypto scene.
“Former President Donald Trump recently made headlines when he announced his intention to incorporate cryptoassets into his policies. He said that Bitcoin will ‘make America great again.’ In this case, how does the Japanese government intend to [approach] cryptoassets?”
Genki Oda, Chairman of the Japan Cryptocurrency Exchange Association
Taira answered that much of this would depend on the results of forthcoming elections in both Japan and the USA.
“In the United States, it is still unknown who will become President after November’s elections. In Japan […] it is also unclear who will become the next Prime Minister.”
LDP Lawmaker Masaaki Taira
New PM to Shape Crypto Policy for Japan
Taira was speaking in the wake of Prime Minister Fumio Kishida’s announcement last month that he would step down in September.
The secretary-general of the ruling Liberal Democratic Party threw his hat into the ring to become Japan’s next prime minister with a pledge to vanquish deflation once and for all within six months of becoming leader https://t.co/SVI8iUw9UY
— Bloomberg (@business) September 4, 2024
Kishida has pursued pro-web3 policies since he took office. But it remains unclear if his successor will look to follow Kishida’s lead.
The ruling Prime Minister has spoken about web3’s potential as a future growth engine for the Japanese economy.
He has also talked up the potential of using non-fungible tokens (NFTs) as part of new Japanese economic drives.
The lawmakers also spoke about the government’s record on crypto tax reform. Tokyo has already changed the way it taxes crypto-holding firms.
Regulators have also asked the government to abolish sliding income tax on crypto earnings in favor of a flat 20% capital gains levy on trading profits.
Japan's budget demands to hit record as leadership race steps up https://t.co/UwGhpYYovu pic. .com/M8HVUEbibG
— Reuters (@Reuters) September 4, 2024
Japanese People Are ‘Not Talking Much About Crypto Anymore’
However, as things stand, the tax rules for individuals remain in place. The media outlet explained:
“There are concerns that [Japan’s] strict tax rules will lead to a decline in the international competitiveness of Japanese web3-related businesses.”
Political opponents and crypto industry leaders have accused Tokyo of dragging its heels.
They have warned that many of Japan’s top crypto and blockchain talents are relocating overseas in a bid to escape prohibitive taxes and regulations.
Osaka resident Hiroko Nozue told Cryptonews.com:
“People here generally don’t talk about crypto or Bitcoin as much as they used to.”