Japan’s ruling Liberal Democratic Party (LDP) has proposed reducing the country’s crypto tax rates, signaling a shift in regulatory approach.

On March 6, Akihisa Shiozaki, a member of Japan’s House of Representatives, shared details of the proposal on X, noting that it is open for public feedback until March 30. The initiative seeks to redefine cryptocurrencies as a new asset class under the Financial Instruments and Exchange Act.

According to Shiozaki’s X post:

“[The proposal] positions crypto assets as a new asset class distinct from securities under the Financial Instruments and Exchange Act, aiming to promote market development, protect investors, and implement separate taxation.”

If approved, the proposal would introduce a 20% tax rate for crypto investments, aligning them with stocks and other financial products. This would significantly drop from the current 55% rate, making crypto taxation more favorable for investors.

Meanwhile, the initiative is part of ongoing efforts by the LDP’s Web3 Working Group, led by Shiozaki, to refine Japan’s approach to digital asset regulations. It also suggests that this reclassification could pave the way for spot crypto exchange-traded funds (ETFs) in Japan.

The tax reform push aligns with Prime Minister Shigeru Ishiba’s earlier announcement of a broader plan to update Japan’s crypto taxation policies. The initiative is linked to an economic stimulus package to ease public debt and curb inflation.

Community reaction

The proposal has sparked optimism in the crypto community, with many viewing it as a step toward making Japan one of the most welcoming environments for digital assets.

Crypto analyst Scott Melker noted that high taxes have been a significant obstacle to adoption, and a reduction could drive greater participation in the sector.

Meanwhile, Bitwise’s Head of Alpha Strategies, Jeff Park, suggested that the move could help Japan build a strategic reserve of digital assets. He pointed out that incentivizing domestic crypto investment could position the country more competitively in the global financial landscape.

The post Japan proposes crypto tax cut to boost investor appeal appeared first on CryptoSlate.

Pyth Network has announced a strategic partnership with Coinbase International Exchange to revolutionize asset pricing in the crypto trading space.

This integration, dubbed “Pyth Lazer,” is set to deliver market truth at an institutional scale with an astonishing update speed of one millisecond.

This development comes at a time when cryptocurrency trading demands faster and more accurate price discovery mechanisms to support the industry’s exponential growth.

The announcement was made via a tweet from Pyth, highlighting the key benefits of Pyth Lazer: real-time market movements, direct market access, and institutional-grade reliability.

According to Marc Zeitouni, CEO of Coinbase International Exchange, this partnership aims to enhance the precision and speed of pricing data, thereby pushing the boundaries of crypto trading innovation.

The Growing Influence of Coinbase in the Crypto Space

Coinbase’s growing influence in the financial sector has been remarkable. With over $420 billion in digital assets under management (AUM), the exchange has surpassed traditional banking institutions like New York Community Bancorp, which reported a loss of $260 million in Q4 2023 following its acquisition of Signature Bank.

Meanwhile, Coinbase reported a net profit of $273 million in the same period, marking a significant turnaround since Q4 2021.

Coinbase CEO Brian Armstrong has highlighted the exchange’s potential to become a financial powerhouse, stating that if Coinbase were classified as a traditional bank, it would rank as the 21st largest in the U.S.

Furthermore, if categorized as a brokerage firm, it would hold the 8th position in terms of AUM.

Armstrong envisions a future where cryptocurrency platforms integrate traditional financial services, creating an all-in-one “neobank” model for users.

He believes that the financial system’s evolution will see a greater percentage of global GDP operating on crypto rails, leading to sound money, lower friction transactions, and increased economic freedom.

Despite these advancements, Armstrong and Coinbase’s Senior Director of Engineering, Chintan Turakhia, acknowledge the challenges that hinder mainstream crypto adoption.

Issues such as complex wallet setups, high transaction fees, and the necessity of acquiring blockchain-native tokens before transactions remain key barriers.

Addressing these friction points will be critical in onboarding the next billion users into the crypto ecosystem.

Pyth’s Expanding Network and SEC’s Regulatory Retreat

This partnership between Pyth Network and Coinbase is not the first major collaboration for Pyth.

Last year, Pyth Network formed a similar alliance with The Open Network (TON) to provide high-quality data feeds to developers within the TON ecosystem.

This integration allowed TON developers to access real-time price data, enhancing the reliability and efficiency of decentralized finance (DeFi) applications on the network.

This major partnership announcement also follows a significant regulatory shift in the U.S. crypto landscape.

Following the new pro-crypto administration, the Securities and Exchange Commission (SEC) recently dropped its enforcement case against Coinbase.

The case, initially filed in 2023, accused Coinbase of operating as an unregistered securities exchange and failing to register its staking program properly.

With President Donald Trump’s administration taking a more pro-crypto stance, changes within the SEC have become evident.

More recently, a White House Crypto Summit hosted by President Trump and chaired by David Sacks, the AI & Crypto Czar, is scheduled for March 7, 2025, and will bring together crypto founders, CEOs, and investors to discuss the industry’s future.

For the crypto industry, these developments indicate a new era of innovation and institutional adoption.

As it stands now, with many innovations pioneering every day and regulations becoming clearer, we might be headed towards a bullish 2025.

The post Pyth Network Partners with Coinbase to Enhance Asset Pricing appeared first on Cryptonews.