Key Takeaways
- The Japanese government and ruling coalition aim to shift crypto income to a separate taxation scheme.
- Cryptocurrency will be taxed at 20%, replacing the up-to-55% progressive rates, to stimulate local trading.
Japan’s government plans to implement a 20% flat tax rate on crypto gains starting in 2026, aligning digital asset taxation with stock trading under a comprehensive regulatory overhaul.
The shift is intended to move away from Japan’s current progressive tax structure toward a simplified flat rate used for traditional securities.
The FSA is driving an initiative to integrate digital assets into existing financial frameworks. The regulator has proposed to reclassify select cryptocurrencies, including Bitcoin and Ethereum, as financial products under the Financial Instruments and Exchange Act.
The new classification would introduce mandatory disclosures and insider trading prohibitions similar to those governing conventional investments.
The regulatory changes represent Japan’s effort to encourage domestic crypto trading by reducing the tax burden on digital asset gains. The reform aims to align crypto assets with traditional investments under unified oversight and taxation rules.
Source: https://cryptobriefing.com/japan-20-percent-flat-tax-on-crypto-gains-2026/