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Japan's Financial Services Agency plans to reform cryptocurrency taxation, proposing a 20% flat tax rate
4hours ago

Odaily Planet Daily News Nikkei reported that Japan's Financial Services Agency (FSA) plans to include cryptocurrency tax reform in its 2026 tax revision plan. The plan is expected to combine tax changes with stricter supervision, and may introduce ETFs linked to cryptocurrencies. The reform plan contains two key parts: first, it includes revising the tax law to change cryptocurrencies from comprehensive taxation to the same category as stocks. Second, it includes a legal amendment to reclassify cryptocurrencies as financial products, enabling the FSA to apply insider trading rules, disclosure standards and investor protection measures under the Financial Instruments and Exchange Act. Currently, Japan taxes cryptocurrency gains as "miscellaneous income" with a progressive tax rate that can exceed 50% once local taxes are included. Stocks and bonds are subject to a flat tax of 20%. (BeInCrypto)