TechFlow news, on December 26, according to CoinPost, the Liberal Democratic Party of Japan and Nippon Ishin no Kai released the outline for tax reform in fiscal year 2026 on December 19, proposing to position cryptocurrencies as financial products that contribute to national wealth formation, and planning to introduce a separate taxation system. Under this proposal, physical cryptocurrency trading, derivatives trading, and ETFs will be included in the scope of separate taxation, with capital losses allowed to be carried forward for three years—aligning the tax treatment more closely with that of stocks and other financial products.
It is worth noting that this reform does not cover all cryptocurrency transactions; income-generating activities such as staking and lending may still be subject to the current tax regime. Meanwhile, NFTs are not explicitly included in the reform and may continue to be taxed as miscellaneous income under comprehensive taxation.
Exchanges will submit user transaction reports to tax authorities, leading to higher tax compliance requirements for investors in the future. Experts advise investors to organize their transaction records in advance to ensure smooth compliance when the new tax system takes effect.
