Overview

• Under a reported FSA plan, crypto gains would shift from progressive 'miscellaneous income' rates to a separate 20% flat bracket aligned with equities.
• The regulator intends to bring digital assets under the Financial Instruments and Exchange Act, enabling investor protections, disclosure rules, and a pathway to domestic crypto ETFs.
• A three-year carry-forward for trading losses is included in the reform package as a proposal under consideration.
• Japan’s first domestically regulated yen-backed stablecoin, JPYC, is reportedly slated for approval, with the issuer targeting about 1 trillion yen in issuance over three years.
• Officials frame the overhaul as a bid to lower tax burdens, attract institutional participation, and discourage firms from moving operations overseas.