Japan’s ruling Liberal Democratic Party (LDP) is advancing a proposal to reduce capital gains taxes on cryptocurrencies to 20%. This reform aims to classify digital assets separately from traditional securities, aligning Japan’s approach with global trends. The move is part of a broader effort to make Japan a more competitive hub for crypto investments.

The proposal includes changes to the taxation of crypto derivatives and the deferral of taxes on crypto-to-crypto swaps until converted into fiat currency. Lawmakers believe these changes will encourage growth in the sector while maintaining regulatory oversight.

Japan has historically taken a cautious approach to crypto regulations, balancing innovation with consumer protection. This proposal follows ongoing crypto tax reforms and the government’s broader economic stimulus initiatives. Lawmakers have also considered the potential adoption of Bitcoin reserves to diversify national assets.

While some officials support Japan’s increasing engagement with crypto, concerns remain about oversight and market stability. The proposal is currently open for public feedback, with final decisions expected in the coming months.

Telegram Mini App PAWS has migrated to the Solana blockchain after Telegram enforced a policy requiring Mini Apps and third-party crypto wallets to operate exclusively on the TON blockchain. PAWS, a SocialFi project with over 80 million users, chose to move rather than remain within a restricted ecosystem. The migration has boosted Solana’s ecosystem, with over 9 million new Phantom wallet downloads and more than 1 million newly funded Solana addresses.

The transition has also sparked increased NFT activity, with PAWS-related NFT vouchers generating over 100,000 transactions on Magic Eden. This move reignited discussions on blockchain ecosystems’ sustainability, contrasting short-term speculative liquidity bursts with models emphasizing long-term community engagement. PAWS aims to inject lasting value rather than rely on rapid capital inflows.

As part of its rebranding, PAWS intends to evolve into a Web3 brand, integrating DeFi tools, gaming, and social engagement. Future plans include expanding across multiple blockchains, including Ethereum and layer-2 networks. Beyond crypto, the project seeks mainstream adoption through strategic partnerships and real-world activations.

The move sets a precedent for whether Telegram’s vast user base can transition into decentralized blockchain ecosystems. If successful, PAWS could serve as a model for future Web3 projects looking to bridge closed-platform audiences with open, permissionless blockchain networks.

New York lawmakers have proposed a bill targeting cryptocurrency fraud, specifically aiming to combat rug pull scams that have become prevalent in the space. The legislation, introduced by Assemblymember Clyde Vanel, seeks to establish criminal penalties for fraudulent practices associated with digital assets, particularly those that deceive investors through abrupt project collapses.

The bill, identified as A06515, would categorize “virtual token fraud” as a specific offense, targeting deceptive activities within cryptocurrency markets. It defines virtual tokens broadly, including security tokens and stablecoins, to ensure a comprehensive regulatory approach to emerging financial risks.

Recent high-profile rug pulls, such as the collapse of the Libra token, have intensified concerns among regulators. The token’s developers allegedly siphoned over $107 million, triggering a near-total price crash and causing significant losses for investors. Such incidents have led to renewed calls for stricter oversight and legal accountability.

Industry experts argue that fraudulent activities in crypto markets should fall firmly within the jurisdiction of law enforcement agencies. The bill’s proponents believe increased regulation is necessary to protect investors and maintain market integrity, particularly as memecoin scams and insider manipulation continue to undermine trust in the sector.