Japan Plans Major Crypto Tax Reform, Cutting Rate to 20% by 2026

Japan is slashing cryptocurrency capital gains taxes from 55% to a flat 20%, a strategic move to position itself as a global fintech hub. The reforms, effective by 2026, introduce loss carry provisions and simplify compliance—a direct response to industry demands for clearer regulation.

The current progressive tax structure has long been criticized for stifling innovation. By aligning with international standards, Japan aims to attract both retail and institutional capital. Market participants anticipate increased liquidity across major exchanges as regulatory certainty improves.

This policy shift mirrors broader Asian cryptocurrency adoption trends. While no specific coins are named in the legislation, the tax overhaul creates favorable conditions for all digital asset trading. The changes particularly benefit active traders through the new three-year loss offset mechanism.