Japan is moving closer to fixing one of crypto’s biggest pain points in the country – taxes. But the details show the change won’t apply to everyone.
Under its 2026 tax reform blueprint, Japan plans to cut crypto capital gains tax from as high as 55% to a flat 20%. The move would put certain digital assets on the same footing as stocks and investment trusts, a long-standing demand from investors and industry groups.
The reform isn’t new but what’s clearer now is how limited its scope will be.
The lower tax rate will apply only to “specified crypto assets” handled by businesses registered under Japan’s Financial Instruments and Exchange Act (FIEA).
Around 105 cryptocurrencies currently listed on registered exchanges are expected to fall under this category, with major assets like Bitcoin and Ethereum likely included.
Assets outside this framework will not benefit. The blueprint does not clearly include NFTs, and income from staking or lending remains a grey area under the current proposal.
Another notable change is the introduction of a three-year loss carry-forward for qualifying crypto trades. This allows investors to offset future gains with past losses, a rule already standard for stocks and FX trading in Japan.
However, losses from crypto trades will remain ring-fenced and cannot be used to offset gains from other asset classes.
The tax reform also supports Japan’s broader push to integrate crypto into traditional finance. Investment trusts holding crypto would be allowed, and the country has already launched its first XRP exchange-traded fund.
Final rules will depend on legislation passed by the Diet ahead of fiscal year 2026. For now, Japan’s direction is clear: crypto is being welcomed but only within a tightly regulated framework.
Yes. In 2026, Japan plans to lower crypto capital gains tax to a flat 20% for qualifying assets, down from rates as high as 55%.
Only “specified crypto assets” (like Bitcoin) on registered Japanese exchanges qualify. NFTs and staking income may not be included under the current proposal.
From 2026, eligible crypto will be taxed at a flat 20%, aligning with stocks. Both will also allow a 3-year loss carry-forward rule for calculating gains.
The proposed flat 20% tax rate is part of the 2026 tax reform blueprint. Final rules depend on legislation passed by Japan’s Diet ahead of that fiscal year.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
As uncertainty starts to build across crypto charts, experienced investors often look for strong presale…
Strategy added 1,229 BTC for about $108.8 million, averaging $88,568 per Bitcoin, achieving an impressive…
Crypto markets are heading into the final trading days of the year with thin liquidity…
As the markets are approaching the end of 2025, the consolidation seems to have overpowered…
Japan is preparing a major shift in how cryptocurrency gains are taxed, signaling a more…
Story Highlights Bitcoin is currently trading at: Predictions suggest BTC to hit $150K to $250K…
