The Japanese regulatory authority calls for a reduction in cryptocurrency tax rates by 2025

On September 4th, the Japanese financial regulatory authority released a comprehensive tax reform plan for fiscal year 2025, which includes provisions to lower the tax rate on cryptocurrency assets. In its tax reform request on August 30th, the Financial Services Agency (FSA) of Japan emphasized cryptocurrencies and strongly advocated treating them as traditional financial assets available for public investment. The FSA wrote: "Regarding the taxation treatment of cryptocurrency transactions, cryptocurrencies should be viewed as a type of financial asset and should become an investment target for the public." According to TokenTax, a cryptocurrency accounting firm, profits from cryptocurrencies in Japan are currently taxed as miscellaneous income at rates ranging from 15% to 55%.