🔥 Big News from Japan: Fiscal Turnaround + Crypto-Friendly Tax Reforms!
Japan just made headlines with a major fiscal shift. On December 26, Prime Minister Sanae Takaichi announced that the country is on track for a primary fiscal surplus of 1.34 trillion yen in FY2026 – the first in 28 years! 💰
This comes alongside approval of a record 122.3 trillion yen annual budget, designed to boost the economy while keeping finances sustainable and easing worries about Japan's high debt levels.
Bond yields are rising, but the focus is shifting toward reducing debt-to-GDP ratio over time.
Even bigger for crypto fans: The 2026 tax reform outline treats crypto assets as "financial products that help build national wealth." 🤯
Key highlights:
Gains from spot trading, derivatives, and crypto ETFs could get separate (lower) taxation – around a flat 20% rate, with up to 3 years of loss carryforward (similar to stocks).
Staking rewards, lending income, and NFT trades likely stay under comprehensive taxation for now – details still being finalized.
This looks like Japan is going all-in on fiscal discipline and embracing crypto as a legitimate asset class.
Double play: Fixing the books while making it easier for investors to hold and trade digital assets domestically.
What do you think – is this the start of a Japan-led crypto boom in Asia, or more hype than substance?
