In a bold move, Yuichiro Tamaki, leader of Japan's Democratic Party for the People (DPP), has pledged to lower taxes on cryptocurrency gains to just 20% if he wins the upcoming election. Currently, crypto profits are taxed as high as 55%, but Tamaki is pushing for reform, claiming it’s time for Japan to align its crypto tax policy with stock market gains, which are taxed at a lower 20%.

Tamaki took to X (formerly Twitter) on Oct. 20 to rally voters, urging them to back his party if they believe crypto should be treated like other financial assets. His plan would also eliminate tax events when exchanging one crypto asset for another, a significant change for crypto traders.

However, the DPP faces an uphill battle. With only seven out of 465 seats in Japan's House of Representatives, Tamaki’s vision may remain out of reach. Still, with Japan's Financial Services Agency planning a tax code overhaul in 2025, Tamaki’s push could resonate with crypto enthusiasts.

Japan’s general election is set for Oct. 27, and while polls suggest Tamaki's party won't win the majority, they could increase their seats to as many as 20. Crypto investors are watching closely, as Tamaki's promises could change the landscape for the country’s Web3 development.

Currently, Japan’s crypto tax rates range from 15% to 55%, depending on income, and corporate crypto holders face a 30% tax, regardless of profit.

This election may mark a pivotal moment for Japan’s crypto community—if Tamaki’s DPP can gain traction, tax relief for crypto gains may be on the horizon.