Japan to Impose Flat 20% Tax on Crypto Gains in 2026 Overhaul
Japan is set to align cryptocurrency taxation with traditional investment assets by introducing a flat 20% levy on trading gains. The reform, slated for 2026, will remove crypto income from the current progressive tax structure—where rates can reach 55%—and place it under a separate category matching stock market rates.
The new regime allocates 15% of revenue to the national government and 5% to local authorities. Market participants view the MOVE as a catalyst for trading activity and a boost to Japan's digital-asset industry, addressing long-standing complaints about the punitive nature of existing tax rules.
Officials aim to finalize the policy in this year's tax outline, signaling a strategic shift toward mainstreaming crypto assets. The change reflects growing institutional recognition of digital currencies as legitimate financial instruments.
