Japanese government supports reducing cryptocurrency profit tax to 20%
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Japanese government supports reducing cryptocurrency profit tax to 20%
According to Nikkei Asia, the Japanese government has endorsed a proposal to change the tax rate on cryptocurrency profits from the current progressive rate of up to 55% to a flat rate of 20%, aligning it with other financial products such as stocks. This tax reform will be part of a proposal by the Financial Services Agency (FSA) and is scheduled to be submitted to the Diet in early 2026. The Japan Blockchain Association (JBA) has advocated for this change for nearly three years, arguing that the current high tax rate hampers the development of the domestic crypto market. The new tax system will be implemented alongside a stricter investor protection framework, including prohibitions on trading based on non-public information and enhanced disclosure requirements.
Navigating Web3 tides with focused insightsTechFlow, December 2: According to Nikkei Asia, the Japanese government has backed a proposal to change the tax rate on cryptocurrency profits from the current progressive rate of up to 55% to a flat rate of 20%, aligning it with other financial products such as stocks. This tax reform, part of a proposal by the Financial Services Agency (FSA), is planned to be submitted to the Diet in early 2026. The Japan Blockchain Association (JBA) has advocated for this change for nearly three years, arguing that the current high tax rate hampers the development of the domestic crypto market. The new tax regime will be implemented alongside a stricter investor protection framework, including bans on trading based on non-public information and enhanced disclosure requirements.
