🇯🇵 Japan equalizes the tax on cryptocurrencies to that of stocks
Japan has finally begun to dismantle the "tax wall" of 55% around cryptocurrencies. The government and the ruling coalition supported the proposal to apply a fixed rate of 20% on profits from digital assets — the same as stocks and funds.
➡️ What changes
🟡 Today, profits from crypto trading are classified as “other income” and fall into the progressive scale: from 5% to 45%
🟡 Wealthy investors still pay up to 10% in local taxes — reaching up to 55%
🟡 The new regime applies a fixed rate of 20% to crypto — similar to stocks
➡️ Why this matters
🟡 High progressive rates made crypto less attractive
🟡 The equalization reduces the “tax penalty”
🟡 For Web3 and local investors, it is a sign of recognition as a legitimate asset class
➡️ Implementation
🟡 The FSA intends to submit the project in early 2026
🟡 Changes will come via Financial Instruments and Exchange Act
🟡 The package includes greater investor protection: strict oversight, prohibition of insider trading, more transparency
➡️ Global impact
🟡 One of the strictest jurisdictions is moving towards a predictable model
🟡 It could revive the domestic market
🟡 Signal to the world: tax normalization instead of just regulatory tightening
Conclusion:
The reform will place crypto at the same tax level as stocks — making it a conventional financial instrument in Japan.
Cryptocurrency Showcase 💸
