Japan’s Crypto Regulation Overhaul: Calls for Reform and Redefinition

Summary:
Japanese lawmakers from the ruling Liberal Democratic Party (LDP) are advocating for a redefinition and updated regulation of cryptocurrencies. Key figures, Seiji Kihara and Masaaki Taira, emphasize the need to clarify the legal status of cryptocurrencies, which are currently classified as "money" or "currency" but function as investment assets. They highlight the fragmented regulatory environment and complex tax system that burden crypto exchanges, securities firms, and individual traders, with tax obligations reaching up to 55% of profits.
The LDP has recognized the need to revise corporate and personal tax policies related to cryptocurrencies, as outlined in their April white paper. Masaaki Taira proposed appointing a "minister of web3" to accelerate blockchain development. These efforts align with broader moves to modernize Japan’s approach to digital assets, potentially setting new global standards for crypto regulation.