Odaily News Japan's Liberal Democratic Party (LDP) has drafted a crypto tax reform proposal to reduce the tax rate on cryptocurrencies from a maximum of 55% to 20%, and reclassify them as financial products, subject to the Financial Instruments and Exchange Act, similar to the tax model for securities investment. Currently, Japan regards cryptocurrency gains as "miscellaneous income" with a maximum tax rate of 55%. If the proposal is approved, crypto assets may receive independent tax treatment and lay the foundation for spot crypto ETFs. The LDP is soliciting public opinions until March 31, after which it will be submitted to the Financial Services Agency (FSA) for review. (The Block)