Japan Proposes Major Crypto Tax Overhaul, Cuts Rate to 20% and Paves Way for ETFs

Reading Time: < 1 minute

Japan’s Financial Services Agency (FSA) is set to propose a significant revision to the country’s cryptocurrency tax code.

The plan, to be submitted by the end of August, aims to reclassify crypto gains from “miscellaneous income” (taxed at up to 55%) to a separate category with a flat 20% tax rate, aligning it with stock investments.

This change, intended for the 2026 fiscal year, also includes a three-year loss carry-forward provision. Furthermore, the new classification will simplify the process for launching domestic cryptocurrency ETFs. The move is part of a broader effort to enhance Japan’s competitiveness in the global crypto industry.