Japan’s long-discussed cryptocurrency tax reform may take longer than many had hoped. Recent signals from political insiders suggest the shift to a separate declaration tax system is now more likely to begin in January 2028, rather than 2027 as previously expected.
For now, the government appears focused on investor protection and wants to see how new crypto regulations perform before moving ahead with tax changes. Under the current system, crypto profits are treated as miscellaneous income and can be taxed at rates as high as 55%. This delay is disappointing for many in the industry, who have been pushing for a simpler, stock-like tax rate of around 20% to encourage wider adoption and market growth.
