Analysis: The Japanese Senate election may reshape Bitcoin policy

[Analysis: The Japanese Senate Election May Reshape Bitcoin Policy] Japan, once one of the world's largest crypto markets, has seen its market dominance gradually weaken after major hacker incidents such as Mt.Gox and Coincheck. Nevertheless, the Japanese crypto market still has enormous potential, with the total scale of personal financial assets estimated at around 200 trillion yen, approximately 1.35 trillion dollars. However, high tax rates and complex rules for calculating losses on encryption assets pose significant barriers to investment. The election on July 20 may fundamentally reshape Japan's national governance structure and become a key moment for the development of cryptocurrency policy. As the ruling coalition struggles with tax reform, the opposition is quickly gaining momentum. The Japanese crypto industry is closely watching potential changes to the crypto tax classification system. Notably, the opposition advocates for a separate taxation system to replace the current "miscellaneous income" rule.