Japan’s government plans to introduce a flat 20% tax on cryptocurrency profits, the same rate applied to earnings from stocks and investment funds.
This change would replace the current variable rate, which can reach 55% in some cases.
The Financial Services Agency (FSA) first brought up the idea in November and intends to submit legislation during the regular 2026 parliamentary session.
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Nikkei Asia, a local media outlet, confirmed that the plan aims to align crypto taxation with that applied to traditional financial investments, such as equities and investment trusts.
Under the current tax system, profits from crypto trading are treated as “miscellaneous income” and are subject to a tiered tax structure. Rates range from around 5% to 45%, with an extra 10% inhabitant tax for high earners.
The proposal would simplify this by treating crypto gains the same as other financial earnings.
The new rules would be part of an investor‑protection package proposed in the FSA’s bill, which also seeks to amend the Financial Instruments and Exchange Act. The updates would include a ban on trading based on non‑public information and requirements for more detailed investment disclosures.
HM Revenue and Customs (HMRC) in the UK recently outlined plans to change how taxes apply to people using decentralized finance (DeFi) services. What does the proposal include? Read the full story.
