Japanese LDP lawmakers urge crypto tax and regulatory reform

A blockchain promotion parliamentary league under Japan's ruling Liberal Democratic Party (LDP) has urged the government to include blockchain and Web3 in its national strategy and overhaul regulations to foster the crypto industry, local media outlet CoinPost reported. The policy proposal calls for comprehensive crypto tax reform, the introduction of ETFs, easing leverage trading rules, addressing unregistered operators, and creating a national crypto strategy. On taxation, the league proposed reviewing the application of separate self-assessment and withholding tax systems and establishing clear standards for crypto transactions and inheritance. It also argued that the current 2x leverage limit for retail investors is excessively low, advocating for a gradual increase accompanied by stronger margin management systems. Additionally, the proposal pushed for a formal framework for crypto ETFs and stronger cooperation with overseas regulators.