Japanese encryption tax reform questioned by Shigeru Ishiba! The opposition party is angry: What about the promised Web3 national strategy?

Tax reform controversy: government's indifferent attitude

At the plenary session of the House of Representatives in Japan, Prime Minister Shigeru Ishiba expressed strong doubts about the tax reform of Crypto Assets, directly impacting the development prospects of the Japanese Cryptocurrency industry. In this week's Q&A session, Ishiba raised sharp questions about whether the public should be encouraged to invest in encryption assets, with a cautious and negative attitude.

He explicitly stated, 'Should the government encourage investment in encryption assets like stocks and investment trusts? Can the public understand the application of separate taxation? These questions need to be carefully considered.'

Currently, Japan's Crypto Assets tax rate is as high as 55%, recognized as one of the world's most rigorous tax policies. This extremely high tax rate not only hinders the development of the Crypto Assets market, but also leads to continued outflow of industry capital and talent. Tetsuo Asano, representative of the Liberal Democratic Party, elaborated on the serious impact of the current tax system at the meeting. He emphasized that as the global encryption asset market grows rapidly, the current 55% highest tax rate has become a major obstacle to the development of the domestic encryption industry.

More worrying is the fact that Shallow Tetsu pointed out that Web3 enterprises and individual assets are continuing to flow out of Japan, which not only implies potential economic losses, but also reflects the crisis of Japan's gradual marginalization in the global encryption financial technology competition. According to preliminary statistics, more than 30 encryption-related enterprises have considered relocating their headquarters out of Japan in the past year to seek a more relaxed regulatory environment.

The opposition party strongly criticized

The leader of the Japanese People's Party, Yuichiro Tamaki, expressed strong dissatisfaction and deep concerns in response to the Prime Minister. He posted harsh criticisms on social media platforms:

The gap between Japan and the United States, which is committed to becoming a BTC superpower, is continuously widening. We have only been considering, where is the strategic plan to make Japan a leading Web3 country?

Yumoku Yuichiro believes that Ishiba Shigeru's lack of response to the long wick candle and 20% individual taxation and loss carryforward deduction reflects the government's conservatism and hesitation in cryptocurrency policy.

Image source: X Yuuki Yuichiro harshly criticized: "The gap between Japan and the United States, which is committed to becoming a Bitcoin powerhouse, is widening."

The opposition party insists on reducing the current 55% encryption currency tax rate to 20% and actively promotes the introduction of encryption asset ETFs to align with international markets such as the United States. They believe that only through more competitive tax policies can Japan attract international investors and rebuild its competitiveness in the global encryption financial field.

However, Shih Po-mao is cautious about whether to include encryption assets in ETFs. He explicitly stated that it needs to be carefully considered based on whether it is necessary to make it easier for the public to invest. This attitude is interpreted by the industry as hesitation and resistance to emerging financial technology.

Future Development and Policy Outlook

The Financial Services Agency (FSA) plans to review the cryptocurrency-related tax policies in 2024. Despite the current government's tough stance, the industry and opposition parties still hope that the policies can gradually be loosened. It is worth noting that BTC's inventor, Satoshi Nakamoto, has a Japanese name, so Japan has a special historical position in the cryptocurrency field. However, the current tax policies seem to contradict this innovative tradition.

Experts generally believe that Japan needs to find a balance between strict regulation and innovative development. Overly strict tax policies not only suppress the innovative vitality of the cryptocurrency market, but may also lead to the loss of financial technology talents and innovative enterprises. The global community is closely following the development of Japan's cryptocurrency tax reform, which is not only related to the prospects of the domestic encryption industry, but also affects its competitiveness and position in the international financial technology field.

Currently, from Tokyo to Sapporo, from Crypto Assets startups to traditional Financial Institutions, all parties are closely following the potential changes in policies. Regardless of the ultimate outcome, the debate surrounding the taxation of Crypto Assets reflects Japan's profound contradictions and struggles in the face of financial technology innovation.

Further Reading Shi Po Mao advocates tax reform! The encryption asset tax will be reduced to 20%, will it promote the rise of Japan's digital economy? Shiho Shigeru becomes the Prime Minister of Japan! Appointed a crypto-friendly member of parliament as the Minister of Digital, revealing future prospects

『Japan's encryption tax reform is questioned by Shigeru Ishiba! The article was first published in "encryption city"