The Liberal Democratic Party of Japan is promoting cryptocurrency tax reform, proposing a separate 20% tax

According to a report by Coinpost, Akishige Shiogasaki, the head of the Web3 working group at Japan's Liberal Democratic Party's Digital Society Promotion Headquarters, reported that the LDP Government Investigation Committee officially approved an "Emergency Proposal on Converting Cryptocurrency Assets into Assets Beneficial to the National Economy" on the 19th. The report pointed out that under current tax laws, income generated from cryptocurrency transactions is generally classified as miscellaneous income and taxed at a combined rate of up to 55% (income tax and resident tax), which is more stringent than in other countries. Given these points and whether cryptocurrencies should be considered financial assets for public investment, several considerations should be made: changing gains or losses from cryptocurrency transactions to a "separate declaration taxation" system with a 20% tax rate; allowing losses in cryptocurrency earnings to be carried forward for deductions (usable within next three years); applying this same "separate declaration taxation" system also applies to derivative trades of cryptocurrencies.