Japan is planning to impose a 20% unified tax on cryptocurrency transactions and promote the issuance of ETFs through tax law revision.
BlockBeats News, August 24th, according to Nikkei report, the Japan Financial Services Agency (FSA) plans to require a review of how cryptocurrency transactions are treated in the 2026 fiscal year and plans to refer to the treatment of listed stocks. The request will be formally made at the end of August, including transferring cryptocurrency gains to a separate tax bracket and applying a 20% flat tax rate. As part of the tax reform, industry players are also requesting a three-year carryforward of losses. Currently, cryptocurrency income in Japan is considered "miscellaneous income," with a progressive tax rate of up to 55% and excluding local taxes.
The proposal from the Japan Financial Bureau will also facilitate Japanese companies to easily launch domestic cryptocurrency ETFs to enhance the competitiveness of the Japanese cryptocurrency industry. In addition to tax reform, the Financial Bureau also plans to draft legislation in 2026 to include cryptocurrency in the "Financial Instruments and Exchange Act" as a "financial product," rather than a "payment means" regulated by the "Payment Services Act."
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