Can Japan accumulate Bitcoin? Shigeru Ishiba responded! What are the future encryption policy proposals?

Is Japan expected to reserve Bitcoin? What is Shizuka Mochizuki's response?

According to CoinPost, the Japanese government has responded to the issue of holding Bitcoin reserves, showing a conservative attitude.

According to reports, the response to the inquiry raised by Senator Satoshi Hamada in the defense document, due to the fact that the Japanese government has not yet detailed the specific trends of countries such as the United States in Bitcoin reserves, the discussion of other countries promoting Bitcoin reserves mentioned by Hamada is still in the early stages. Therefore, it is 'difficult to express a specific position' on Japan's side.

The Japanese government emphasizes that according to the legal framework for the use of special accounts, cryptocurrencies do not fall under the category of foreign exchange. The current foreign exchange reserve system mainly focuses on maintaining the stability of foreign currency assets and the foreign currency bond market, and the government particularly emphasizes that reserve management must prioritize safety and liquidity.

Although Fed Chairman Powell has explicitly stated that 'Fed cannot hold Bitcoin', Trump and some Republican lawmakers are still actively pushing for the establishment of a strategic Bitcoin reserve.

The Liberal Democratic Party has proposed using blockchain technology to promote local revitalization.

When Shihpo Mao ran for the presidency of the Liberal Democratic Party, his policy proposals particularly emphasized the idea of using technology to promote local revitalization.

In its 'Local Revitalization 2.0' policy, it explicitly proposes to make good use of blockchain technology and NFTs to transform the traditional values of local food culture and tourism experiences into globally competitive digital assets.

Image source: In the 2024 LDP presidential election, Shigeru Ishiba's policy collection Shigeru Ishiba clearly stated in his 'Regional Revitalization 2.0' policy that he proposes to make good use of blockchain technology and NFTs.

Shi Bomo's policy proposals also include improving Internet infrastructure and promoting digitalization to eliminate information disparities, and promoting local talent development in areas such as distance education, healthcare, and business. The aim of these policies is to eliminate the phenomenon of resources being concentrated in Tokyo, while providing more development opportunities for local enterprises and startups.

The Japan Cryptocurrency Business Association (JCBA) previously issued guidelines in December 2023, explaining how to use NFTs and DAOs (Decentralized Autonomous Organizations) to strengthen local community connections and promote local revitalization.

In addition, Hirano Akiraka, a member of the Liberal Democratic Party's Digital Society Promotion Headquarters, also expressed optimism about the development of NFTs, advocating for the integration of Japan's intellectual property (IP) with NFTs to enter the global market.

Japan will include the crypto tax system in the 2025 reform outline for the first time.

In addition to the local revitalization policy, the Japanese government is also preparing to discuss relevant reforms of the virtual asset tax system in 2025.

Previously reported by Cryptopolis, the ruling Liberal Democratic Party and Komeito Tax System Investigation Committee recently announced the outline of the tax system reform for 2025, including for the first time the discussion of the virtual asset tax system, expecting a major breakthrough in industry development.

Japanese cryptocurrency investors have long been subject to a high capital gains tax rate of up to 55%, and are unable to offset profits and losses across fiscal years, leading to a significant outflow of talent and projects overseas.

Takuya Hirai, the inaugural Minister of Digital for the Liberal Democratic Party, has submitted an 'emergency proposal for virtual asset measures'. The proposal suggests changing the taxation of cryptocurrency trading income to a separate declaration tax system, establishing a clear regulatory framework, and increasing investment in cybersecurity. If the legislation is successfully passed in the future, the tax rate is expected to drop to about 20%, and cross-year losses and gains will be allowed to be offset.

The reform outline also mentions adjusting the annual income threshold, planning to raise the current limit of 1.03 million yen to 1.23 million yen, and including the target of raising it to 1.78 million yen in the 2025 discussion range.

Although Representative Yuuki Yuichiro of the Koku Minshuto party believes that the adjustment of 1.23 million yen is still insufficient, these policies demonstrate the Japanese government's determination to support the blockchain and cryptocurrency industry.

Further reading: A new chapter of Web3 in Japan is coming! Understand the progress of crypto regulation in one picture, all organized by well-known KOLs

Can Japan accumulate Bitcoin? Shigeru Ishiba responds! What are the future proposals for cryptocurrency policies? This article was first published in 'Crypto City'.