The CEO of financial services conglomerate SBI Holdings has criticized Japan’s prime minister (PM) regarding the government’s absurd crypto tax rates. Yoshitaka Kitao, a proponent of the XRP ecosystem, said in a recent interview that Shigeru Ishiba is the “only one who is not convinced” about lowering rates to 20%.

In politics — and politically embedded big business — you never know who is on what side. It might be safe to say they are all against you, pretending to be against one another.

Perhaps that is why Yoshitaka Kitao, CEO of the $7.6 billion-dollar financial services firm SBI Holdings, not only lambasted the country’s new prime minister about high crypto tax rates in a recent interview, but also threw pro-crypto leader of the Democratic Party for the People (DPP), Yuichiro Tamaki, under the bus, claiming he is manipulating the minority ruling party.

Either way you slice it, Japan is in trouble when it comes to money and keeping up with the rapid innovations of cryptocurrency, and SBI’s Kitao directed strong words toward the government’s lead figurehead on the issue.

SBI’s Kitao to prime minister: ‘The only one not convinced [about crypto] is you’

While Japan’s parasitic tax system currently wrings out individuals for up to 55% of their crypto gains (and even over 100% in cases where inheritance is factored in), The SBI CEO wants to implement a separate 20% taxation system for digital assets, similar to how stocks are taxed.

Kitao pointed to the dire condition of the economy, telling the publication AERA: “The fundamental reason for the weak yen is the decline of national power.” He went on to cite rising food prices not keeping up with wages, and emphasized: “I’m really worried about Japanese politics.”

When asked about the PM’s administration, Kitao stated that the ruling party is being manipulated by the likes of opposition party leader Tamaki and the DPP, and brought up Ishiba’s public antipathy toward crypto. “For example, when (Prime Minister) Ishiba is asked about his opinion on lowering the tax rate on crypto assets to 20%, the same as stocks, he says, ‘Will the people be convinced?'” Kitao prefaced, declaring boldly: “From my point of view, I would say that the only one not convinced, is you.” He then reminded the interviewer that Japan is the only country that taxes crypto gains at 55%.

Kitao’s stance on XRP

Yoshitaka Kitao has become an influential figure not only in Japanese finance in general, but also when it comes to the world of cryptocurrencies, thanks to his company’s involvement with Ripple and XRP. In May 2024, for example, SBI VC Trade, part of SBI Group, announced it had begun operation as a validator for the XRP ledger.

The financial services giant also uses XRP to reward shareholders, and has just launched a collaboration with Solana Superteam Japan, to issue exclusive NFTs to users of SBI VC Trade’s Web3 Wallet.

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