The Japanese government plans to uniformly reduce the tax on cryptocurrency gains to 20%, with the proposal to be submitted to the Diet for deliberation as early as 2026.

According to Odaily, the Japanese government has supported changing the tax on cryptocurrency gains from the current progressive tax rate of up to 55% to a flat tax rate of 20%, consistent with financial products such as stocks. This tax reform will be submitted to the Diet as part of a proposal from the Financial Services Agency (FSA), and is scheduled to be submitted in early 2026.

The Japan Blockchain Association (JBA) has been pushing for related reforms for the past three years, arguing that high taxes are hindering the development of the domestic crypto industry. The report indicates that the new tax system is expected to be implemented in conjunction with stricter investor protection measures, including prohibiting transactions using non-public information and strengthening disclosure requirements. (Nikkei Asia)