"Request for a "fundamental organizational expansion" from the Financial Services Agency - The Liberal Democratic Party's Financial Research Committee presents "Proposal 2025" to Prime Minister Ishiba | CoinDesk JAPAN

The Financial Research Council of the Liberal Democratic Party (Chairperson: Senator Satsuki Katayama) submitted to Prime Minister Shigeru Ishiba on June 3 the "Financial Research Council Recommendations 2025," which mentioned blockchain, stating at the beginning of the preface that "In promoting the sound utilization of new technologies such as blockchain in the financial sector, it is important to advance the establishment of a balanced environment that fosters user protection and innovation."

Separate taxation, ETF composition

The proposal is,

1. Overview
2. Promoting Innovation in the Financial Sector
3. Realization of an Asset Management Nation 4.Strengthening regional financial capabilities that contribute to regional revitalization
4. Subcommittee on Corporate Accounting

is composed of 5 chapters, and in "2. Promoting Innovation in the Financial Sector," it discusses

2-1. The framework for cryptocurrency regulations considering trading conditions and trends in the United States. ✓To ensure thorough investor protection related to cryptocurrency transactions and to promote the healthy development of the market, the industry law positions cryptocurrencies as financial products and implements the establishment of an environment through both taxation and regulation.

It is stated that the necessity of developing a cryptocurrency asset tax system has been emphasized, and that "the reporting obligations to tax authorities by trading operators should be established, and a review of the tax system related to cryptocurrency transactions, including the introduction of separate taxation, should be considered" and "consideration should be given to advancing the examination of the tax system to enable the formation of cryptocurrency ETFs".

These are based on the "Emergency Proposal to Make Cryptocurrency an Asset Contributing to the National Economy" made by the Liberal Democratic Party's Digital Society Promotion Headquarters and Financial Research Committee in December last year.

▶Related Articles: "Emergency Proposal to Make Cryptocurrency an Asset Contributing to the National Economy" Liberal Democratic Party Digital Society Promotion Headquarters, Financial Research Committee

Furthermore, regarding cryptocurrency ETFs, it is stated that "there is a need for opinion coordination on the timing of the review of the tax system related to cryptocurrency spot trading and cryptocurrency ETFs in the relevant industry."

In the related industry, there are opinions such as "We should prioritize cryptocurrency ETFs so as not to be left behind in the global movement" and "We should revise the tax system for spot trading at the same time so as not to hinder the growth of the spot market," which can be said to demand a unified stance from the industry.

CBDC, Stablecoin

In other items, it mentions "2-3. The Current Status of Consideration Regarding Central Bank Digital Currency (CBDC)" and states that "the government and the Bank of Japan will collaborate to organize the framework of the institutional design while taking into account trends in Europe and the United States."

CBDC has seen a regression in the United States due to the emergence of the Trump administration, and the focus has shifted to stablecoins. Companies supported by the Trump family are even issuing the stablecoin "USD1".

▶Related Articles: The stablecoin "USD1" supported by the Trump family is now available on multiple blockchains──utilizing Chainlink's CCIP【Consensus 2025】

Regarding stablecoins, it is mentioned in "1-4. Other Issues" that in March this year, a bill to partially amend the Act on Settlement of Funds, including the flexibility in the management and operation of underlying assets, was approved by the Cabinet and submitted to the Diet. It is stated that "this investigation committee will also follow up for the early establishment and smooth enforcement of both bills."

What is noteworthy is that it also touches upon the structure of the Financial Services Agency.

"It is necessary for the Financial Services Agency to swiftly and strongly promote responses to the various policy issues outlined in this proposal; however, the number of management positions per total staff at the Agency is fewer compared to other ministries, and it must be said that the system for promoting policies is inadequate," it is stated, calling for a "fundamental organizational expansion."

On April 10, the Financial Services Agency published a discussion paper titled "Verification of the System Related to Crypto Assets." They solicited opinions widely until May 10.

▶Related Articles: Cryptocurrency may be regulated in two parts - The Financial Services Agency has published a discussion paper on "Examination of the System Related to Cryptocurrency Assets."

At the House of Representatives Budget Committee on January 31, in response to a question from Akihisa Shiozaki, a member of the ruling Liberal Democratic Party's Digital Society Promotion Headquarters web3 Working Group, Finance Minister Kato Katsunobu stated that the government would conduct a review of the system "with the aim of the end of June 2025", drawing attention to the initiatives of the Financial Services Agency following this proposal.

The proposal can be downloaded from the Liberal Democratic Party's website.