Japan Plans to Slash Crypto Tax Rate from 55% to 20% in 2026 Reform
Japan plans to cut its maximum crypto tax rate from 55% to a 20% flat rate by 2026, reclassifying 105 cryptos as financial products.Summary
Japan's Financial Services Agency (FSA) is planning a major crypto reform, targeting legislative submission in the 2026 Diet session, to revitalize its digital asset sector. The core change involves reducing the maximum tax rate on crypto gains from the current 55% (miscellaneous income) to a flat 20%, matching stock and derivatives tax rates. This reform will reclassify 105 cryptocurrencies, including Bitcoin and Ethereum, under the Financial Instruments and Exchange Act, subjecting them to rules like mandatory disclosure and insider trading bans. Furthermore, the plan introduces loss carry-forward measures for investors. Alongside tax changes, the FSA is implementing strict oversight, requiring crypto issuers to disclose risks and banning banks from direct crypto sales to consumers, though securities subsidiaries may distribute assets. These measures follow significant security incidents, like the DMM Bitcoin hack, prompting the FSA to mandate registration and oversight for key infrastructure vendors.
(Source：BeInCrypto)