Amy, I read that political parties in Japan are talking a lot about crypto taxes before the election. Why is that such a big deal?

Yeah, it’s because many people in Japan are into crypto, and the current tax system isn’t very friendly for them. Right now, crypto profits are taxed as regular income, which can be really high for big earners—up to 45%.

Whoa, that’s a lot! How do they want to change it?

Well, some parties, like the Democratic Party for the People, are suggesting a lower, flat tax rate of 20% on crypto earnings. They also want to make it so that swapping one crypto for another doesn’t get taxed.

That makes sense. It would help crypto traders keep more of their money, right?

Exactly. And that’s why they’re pushing it as a campaign point. They’re trying to win over voters who think the current system is too harsh.

Are they the only ones talking about this?

Nope, other parties are joining in too. Even the Liberal Democratic Party, which is in power now, is thinking about reforms. They’ve been talking about how web3 and blockchain could grow Japan’s economy, especially through things like digital currencies and blockchain-based games.

So it’s not just about taxes; it’s also about boosting the tech industry?

Yes, exactly! They see it as a chance to make Japan a leader in web3 technology. They’ve even mentioned supporting digital regional currencies to help local economies.

Wow, that’s pretty cool. What about other parties?

The Constitutional Democratic Party also wants to update the tax system, but they’re focused on making rules for things like DAOs—those are Decentralized Autonomous Organizations—and also exploring CBDCs, which are Central Bank Digital Currencies.

So, it sounds like a lot of parties are excited about crypto and web3. They just want different things.

Exactly. Each party has its own plan, but they all agree that Japan needs to adapt its crypto policies. It shows how important crypto has become, especially when elections are happening.

It’s like a race to get the crypto community’s votes, huh?

Haha, pretty much! They know that if they can show they understand and support crypto, they might gain a lot of support from voters who care about it.