With the Japanese Prime Minister Fumio Kishida indicating that he may be open for reform in order to spark Web3 related growth, it is likely this will have a positive impact on how cryptocurrencies are perceived by citizens.
Last week, the Prime Minister addressing parliament shared that Web3 could lead to economic growth. He also suggested he is prepared to push pro-business legal reform and spoke to British investors about metaverse technologies such as blockchain technology for non fungible tokens (NFTs).
Japanese crypto-related business and talent were forced overseas by overly strict tax policies that were introduced by previous Prime Ministers and their governments. This is despite the progress made with cryptocurrencies like Bitcoin, which has been accepted as both a form of payment or investment across several industries.
Yuichiro Tamaki, leader of the Democratic Party for People (a political party) is one such opponent who strongly believes this policy should be changed because it affects people’s livelihoods as well economic growth rate across all sectors when they invest heavily into cryptocurrency rather than just making gains off its value increase alone without paying any additional fees or earning less money.
Tamaki has called for Tokyo to uproot its current system and make further tax concessions for domestic companies involved with crypto assets. He challenged Kishida on this matter again during a meeting of parliament’s budget committee, saying the government should only tax people and companies when profits are realized. Kishida acknowledged his concerns by answering “we will consider these proposals carefully.”
After the meeting concluded, Tamaki revealed on Twitter that Kishida and the Minister of Finance, Shunichi Suzuki, came over to greet him, leading to positive talks. The issue of taxes was raised again, and this time, the Prime Minister agreed, adding that doing so would provide the country great opportunities.
The forces within Kishida’s own party are believed to be keen on amending the tax code, and some critics have pointed out that other nations with advanced crypto taxes have chosen capital gains protocols for their earnings from cryptocurrency transactions. Kishida previously spoke about improving the environment to incorporate new digital services in the Web3 sector.