Key Japan Lawmakers Call for Redefining Crypto Industry

Japanese Lawmakers Call for a New Definition of Crypto


Tim Alper
Last updated:
June 23, 2024 23:00 EDT
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1 min read


Prominent lawmakers in Japan are urging the country to redefine cryptocurrency and its regulatory approach. This suggests that further reforms in the crypto space may be on the horizon in Tokyo.
According to Japanese news outlet CoinPost, the calls were made by two members of the ruling Liberal Democratic Party (LDP): Seiji Kihara, head of the party’s blockchain promotion group, and Masaaki Taira, chair of the party’s web3 adoption unit.
Time to ‘Redefine’ Crypto, Agree Japanese MPs
Both lawmakers agreed that there is a need to redefine the legal terms surrounding crypto assets, including Bitcoin (BTC).
Kihara pointed out that tokens are currently “legally defined in Japan” as a substitute for terms like “currency” or “money.”
However, he noted that these same tokens are considered “assets” in the investment products space, which he sees as a contradiction.
Taira shared the same view, stating that because crypto “plays a role similar to that played by gold,” the related terminology needs to be redefined.
He believes that doing so would enable financial institutions, such as banks and securities companies, to handle cryptocurrencies in a more conventional way.
Taira also highlighted the fact that Japanese crypto exchanges and securities companies are currently governed by separate laws, and the same applies to the country’s tax system.
More Crypto Reforms on the Horizon?
Critics argue that Japan’s crypto tax system is overly restrictive and has led many blockchain startups to leave the country.
In response, the government has agreed to reform tax rules for corporations.
However, advocates are still pushing for Tokyo to reform tax rules for individuals. Currently, crypto traders can face tax bills worth up to 55% of their profits.
The LDP, which has been in power in Japan since 1965, has indicated this year that it will indeed reform individual crypto tax rules.
In an LDP white paper on tax issues released in April, it was stated that crypto tax reform matters “should be addressed immediately.”
Taira has previously called for the creation of a “minister of web3” in Tokyo to accelerate blockchain-related growth in Japan.
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