The Japan Financial Services Agency has issued tax reform requirements for the fiscal year 2025, mentioning virtual currency trading for the first time

The Japan Financial Services Agency has issued tax reform requirements for fiscal year 2025, which include provisions related to crypto assets (virtual currency). In the "Asset Income Doubling Plan and Realization of Asset Management Country" section of the reform plan, it mentioned for the first time the tax treatment issue of virtual currency transactions, discussing whether virtual currencies should be treated as financial assets. This tax reform request was proposed by various government agencies and will be reviewed by the ruling party's Tax Investigation Committee and Parliament after submission. Although modification requests have been submitted, no final decision has been made yet. Over the past two years, there have always been calls for tax reforms in virtual currency companies; this is the first time that specific mention has been made about taxation on virtual currency transactions in a reform.