Crypto Tax Break in Sight? Japan Eyes 20% Flat Rate and Stricter Market Rules

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Japanese cryptocurrency investors could soon see a dramatic reduction in their tax bills. The nation’s Financial Services Agency (FSA) is pushing a plan to tax crypto gains at a flat 20% rate, a substantial drop from the current top rate of 55%.

This proposal is part of a broader regulatory package that seeks to classify digital assets like Bitcoin and Ether as official “financial products.”

The new framework promises greater market protection for investors. It mandates detailed disclosures for all listed tokens and introduces robust insider trading rules, prohibiting trading based on non-public information like upcoming exchange listings.

The comprehensive bill is expected to be presented to parliament in 2026.