Japan Investors Exit Crypto Not Because of Volatility, But Because of This

A survey of 894 Japanese participants by 400F revealed that the main reason former crypto investors left the market was the complexity of the tax system (22.2%), surpassing price volatility (19.4%). Current holders also cite tax complexity (60%) nearly as often as volatility (61.4%) as a major challenge. In Japan, crypto gains are taxed as miscellaneous income at rates up to 55%, requiring investors to meticulously track and report every trade. This administrative burden is particularly felt by those accustomed to simpler tax-advantaged accounts like NISA and iDeCo. Despite these hurdles, 62.7% of investors still view crypto as a tool for long-term wealth creation. A majority of respondents desire clearer regulatory guidance, and reports suggest the Financial Services Agency (FSA) plans to reclassify crypto and reduce the top tax rate to 20%, which could significantly boost engagement.

(Source：BeInCrypto)