Members of Tomin First no Kai, a ruling party of the Tokyo Metropolitan Assembly, are advocating for a 0% Bitcoin tax in the city as part of their plan to transform Tokyo into a financial hub.

As reported by Yahoo last week, assembly member Yu Ito sees Tokyo's position as a financial powerhouse on the decline in comparison to other major cities in the region and worldwide. "According to our research, the number of financial institutions that are gathered in the city is key to our success or failure," Ito was quoted saying, "unfortunately, Tokyo is lagging behind in that regard."

A progressive cryptocurrency strategy becomes crucial in this situation, Ito said, but Tokyo's taxation of Bitcoin is in the way of wider adoption. Similar to many other countries, Japan currently taxes Bitcoin capital gains like securities capital gains. "However, [Bitcoin] is originally a currency," Ito argued, "therefore, it's not easy to use unless taxation is set to 0%."

Ito further stressed that the city government "should now tackle the issue of monetary policy and taxation around Bitcoin" and "create a special zone in Tokyo so that you can use it tax-free in the city."

Ito's party further seeks to make the addition of financial centers part of the redevelopment plans for the site of the Tsukiji fish market, the formerly largest fish market in the world and a tourist attraction rich in history until its closure in 2018. The city of Tokyo previously revealed plans for a convention center, hotel, and casino to be built on the Tsukiji market site.

Although strongly advocated for by the party, there are currently no confirmed plans to follow through on tax cuts or related developments.

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