Japan Approves 20% Flat Tax Rate on Crypto Profits, Aligning with Stock Investment Rules
Japan's government has endorsed a proposal to standardize cryptocurrency taxation at a flat 20% rate, mirroring the treatment of stock investments. The reform, championed by the Japan Blockchain Association, seeks to simplify the tax landscape and position digital assets alongside traditional financial products.
The Financial Services Agency will submit the bill to parliament in early 2026, marking a pivotal shift from the current system where crypto profits face variable rates of 5-45% as miscellaneous income. This overhaul coincides with enhanced investor protection measures and stricter market oversight protocols.
Market participants anticipate the unified tax structure will boost Japan's appeal as a cryptocurrency hub, eliminating disparities that previously disadvantaged digital asset investors relative to traditional market participants.
