Yuichiro Tamaki, leader of the Japanese Citizen's Democratic Party (CDP), has proposed reforming the country's cryptocurrency income tax as part of his party's Lower House election pledges. The proposal seeks to categorize cryptocurrency trading profits as separate income, rather than miscellaneous income, and to apply a maximum tax rate of 20%. The current tax regime in Japan treats cryptocurrency trading profits as miscellaneous income, which is subject to a progressive tax rate of up to 55%. This has been criticized as being too high and discouraging investment in the cryptocurrency market. Tamaki's proposal would create a new tax category for cryptocurrency trading profits, with a maximum tax rate of 20%. This would bring Japan's cryptocurrency tax regime more in line with other countries, such as the United States and the United Kingdom. It is important to note that the CDP holds just seven out of 465 seats in Japan's lower house, making it unlikely that Tamaki will be able to implement tax reform even if he wins. However, the proposal has been welcomed by the cryptocurrency industry and could help to raise awareness of the issue of cryptocurrency taxation in Japan.