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4d ago

Japan Plans 20% Crypto Tax, Financial-Product Status in 2026 Overhaul

The push signals a coordinated effort to align digital assets with Japan’s securities framework.

Japan's finance minister says crypto assets can be part of diversified portfolio
Japan plans major crypto overhaul with flat 20% tax, pathway to ETFs
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Overview

  • The Financial Services Agency plans to propose moving cryptocurrency gains into a separate flat 20% tax bracket, replacing the current progressive treatment that can reach roughly 55% with local levies.
  • A review for the 2026 fiscal year is expected by the end of August, with a 2026 legislative bill to shift crypto oversight from the Payment Services Act to the Financial Instruments and Exchange Act and to enable disclosure and insider‑trading rules as well as a pathway to domestic ETFs.
  • Industry groups are urging a three‑year carry‑forward for crypto trading losses to align with equity‑market taxation.
  • The regulator confirmed authorization for JPYC Inc. to issue a yen‑pegged stablecoin, with deployment planned on Ethereum, Avalanche and Polygon.
  • Finance Minister Kato said crypto could be a diversification option if an appropriate investment environment is established, signaling support for policy that fosters innovation.