Japan plans 20% flat tax on crypto gains in 2026 tax reform outline

Japan's government and ruling coalition are planning a significant tax reform for digital assets, aiming to implement a 20% flat tax rate on cryptocurrency gains beginning in 2026. This change is designed to replace the current progressive tax structure, which can reach up to 55%, aligning crypto taxation with that of traditional stock trading to stimulate local trading and adoption. Furthermore, the Financial Services Agency (FSA) is driving an initiative to integrate digital assets into existing financial frameworks by reclassifying certain cryptocurrencies, like Bitcoin and Ethereum, as financial products under the Financial Instruments and Exchange Act, which will impose mandatory disclosures and insider trading rules similar to conventional investments.

(Source：Crypto Briefing)