Welcoming the New Cabinet: Can Japan Balance Tax Cuts and Yen Defense?
Japan's new cabinet, led by Sanae Takaichi, faces the challenge of balancing crypto tax cuts with defending the yen.Summary
Sanae Takaichi's new cabinet, including Finance Minister Satsuki Katayama and Digital Minister Hisashi Matsumoto, is set to influence Japan's 'Tax Reform 2026' for the crypto industry. International optimism is high, especially following the FSA's approval for banks to hold BTC. The core domestic tension involves the crypto industry's push for a flat 20% segregated tax rate (down from up to 55% under Comprehensive Taxation) and the creation of crypto ETFs, championed by the FSA. This must be balanced against Finance Minister Katayama's focus on fiscal discipline and defending the Japanese yen against foreign financial influence. Furthermore, the coalition partner, Nippon Ishin no Kai, led by Hirofumi Yoshimura, will push for accelerating regulated Web3, focusing on Security Tokens (ST) and stablecoins, potentially boosting infrastructure like the Osaka Digital Exchange (ODX). The administration must navigate these competing priorities—tax reform acceleration via Ishin and regulatory caution via the Finance and Economic Security Ministers—to establish a 'yen-based digital economic sphere.'
(Source：BeInCrypto)