Japan is moving to shore up investor confidence by proposing a steep cut to crypto‑gains tax. The Financial Services Agency (FSA) wants to slash the rate from the current 55 % down to a flat 20 %, putting digital assets on par with stocks and other traditional investments. The goal is to spark more trading, spur market growth and lure institutional money.
Key points
Tax cut– Gains on #crypto would drop from 55 % to 20 %.
Reclassification– #Cryptocurrencies would be treated as financial products under the Financial Instruments and Exchange Act (FIEA).
Investor safeguards– Tighter rules and stronger protection measures are planned.
Market effect– Expect higher liquidity and a bigger influx of institutional capital.
The reform is part of Japan’s broader push to become a global hub for digital assets and Web3. If passed, the new rate would take effect in fiscal year 2026.
