Japan's LDP Proposes Blockchain and Web3 Integration into National Strategy

Japan's Liberal Democratic Party (LDP) Blockchain Promotion Parliamentary Alliance submitted a policy proposal to Finance Minister Katsuki Katayama on June 1, advocating for the inclusion of blockchain and Web3 in the national strategy. According to Odaily, the proposal covers various areas such as tax reform, crypto ETFs, leverage trading regulation, unregistered operators, cryptocurrency strategy, and trade logistics. The proposal suggests further research into the selection mechanism for 'declaration separation taxation' and 'source separation taxation' for crypto assets, as well as exploring tax treatment for crypto asset exchanges and inheritance. Regarding derivatives regulation, the proposal argues that the current leverage cap of 2x for individual crypto trading is too low and recommends gradually increasing leverage levels in conjunction with margin management systems. Additionally, it calls for clarification of the crypto ETF system's positioning and strengthening enforcement cooperation with overseas regulatory bodies. Finance Minister Katsuki Katayama expressed commitment to advancing related institutional development, including promoting the implementation of crypto ETFs and studying a new tax system set to be introduced in January 2028.