🇯🇵 Japan considers tax reform for cryptocurrency income (2025 update)
The Japanese government and ruling coalition have backed cutting tax on crypto-investment gains to a flat ~20% (similar to stock investment taxes), replacing the current progressive system that can reach up to 55% for high earners.
This would place digital-asset profits under a separate-income tax category, rather than treating them as “miscellaneous income” combined with salary and other earnings.
Policymakers also plan to reclassify certain cryptocurrencies as financial products and require more information disclosure from exchanges, along with insider-trading rules to strengthen investor protection.
Align crypto taxation with traditional investments.
Encourage domestic trading and Web3 innovation.
The proposed tax-cut framework is expected to be part of Japan’s 2026 tax-reform package, which could be sent to parliament in 2026.
Some elements might take effect later: recent reports suggest implementation could slip to 2028 as authorities want more time to build investor-protection rules and market safeguards.
