Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Japan Aims to Solidify Its Position as a Digital Asset Center with 20% Crypto Tax Reform

Japan Aims to Solidify Its Position as a Digital Asset Center with 20% Crypto Tax Reform

Bitget-RWA2025/12/01 09:38
By:Bitget-RWA

- Japan will implement a 20% flat tax on crypto gains by 2026, replacing the current 55% progressive rate to boost market participation. - The reform splits the tax between national (15%) and local (5%) authorities, aligning crypto with traditional assets under a separate-taxation system. - Institutional players like SBI and Daiwa are structuring crypto ETFs and investment trusts, signaling confidence in Japan's regulatory clarity. - The move mirrors global trends like OECD's CARF framework, contrasting wi

Japan Plans Major Changes to Crypto Taxation

Japan is preparing to introduce a new tax policy for cryptocurrencies, proposing a uniform 20% tax rate on profits from digital assets. This adjustment is intended to bring crypto taxation in line with the rates applied to stocks and investment trusts. Currently, crypto gains are subject to a progressive tax system that can reach up to 55%, a structure many believe has discouraged domestic trading.

Under the upcoming system, profits from cryptocurrency transactions will fall under Japan’s separate-taxation category. The 20% tax will be divided between the national government (15%) and local governments (5%). Lawmakers expect to include this reform in the 2026 tax package, with final details to be determined by the end of the year.

Recognizing Crypto as a Mainstream Asset

This policy shift signals Japan’s acknowledgment of cryptocurrencies as a well-established asset class. Regulators hope the new tax regime will make digital assets more attractive to both individual and institutional investors. According to the Japan Virtual and Crypto Assets Exchange Association, spot trading volumes reached $9.6 billion in September 2025, reflecting increased market activity. By lowering the tax burden, officials aim to encourage greater participation in a sector previously hindered by high compliance costs and regulatory ambiguity.

Integrating Crypto into Traditional Finance

Japan is also taking steps to further integrate digital assets into its financial system. The Financial Services Agency (FSA) is working on reclassifying cryptocurrencies under the Financial Instruments and Exchange Act. This change will allow digital assets to be included in investment trusts, broadening access for retail investors. Leading asset managers such as SBI Global Asset Management and Daiwa Asset Management are already developing new products in anticipation of the 2026 regulatory updates. For example, SBI is planning to launch Bitcoin and Ethereum ETFs, aiming to manage ¥5 trillion in assets within three years, highlighting strong institutional interest.

Japan’s Approach in the Global Context

These reforms align with international trends toward standardized crypto regulation and reporting. Japan’s strategy is similar to global initiatives like the OECD’s Crypto-Asset Reporting Framework (CARF), which is also being adopted by countries such as Brazil and Switzerland. In Brazil, stablecoins now represent 90% of monthly crypto transactions, prompting the launch of the DeCripto system in 2025 to monitor activity. Switzerland, on the other hand, has postponed CARF implementation until 2027 due to challenges in defining data-sharing arrangements.

Contrasting Global Tax Policies

Japan’s tax reforms stand in contrast to recent wealth-focused measures in other countries. For instance, Swiss voters recently rejected a proposal to impose a 50% tax on inherited wealth over $62 million, with 78% voting against the measure. This outcome highlights resistance to high-income taxes, even as countries like Brazil and Japan seek to balance fair taxation with market development.

Positioning Japan as a Crypto Leader

As Japan moves forward with its 2026 tax reforms, the country is positioning itself as a welcoming environment for digital asset trading. By lowering barriers for both traders and large investors, Japan aims to attract more capital and strengthen its role as a global center for responsible crypto regulation.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

The Federal Reserve's Change in Policy and Its Effects on High-Yield Cryptocurrencies Such as Solana: Rethinking Risk Management Amidst Shifting Regulations in the Digital Asset Sector

- Fed's 2025 policy shift injected $72.35B into markets, briefly boosting Solana (+3.01%) before macro risks triggered a 6.1% price drop. - EU MiCA and US GENIUS Act regulations drove institutional adoption of compliant platforms, with Solana's institutional ownership reaching 8% of supply. - Fed's $340B balance sheet reduction and SIMD-0411 proposal exposed crypto liquidity fragility, causing 15% market cap decline and 4.7% TVL drop for Solana. - Institutions now prioritize MiCA-compliant stablecoins and

Bitget-RWA2025/12/09 01:18
The Federal Reserve's Change in Policy and Its Effects on High-Yield Cryptocurrencies Such as Solana: Rethinking Risk Management Amidst Shifting Regulations in the Digital Asset Sector

Algo slips 0.52% as Allego unveils app designed to simplify EV charging

- Algo (ALGO) fell 0.52% in 24 hours to $0.1335, with a 60.3% YTD decline, coinciding with Allego's new EV charging app launch. - Allego's app offers real-time pricing, smart routing, and Plug&Charge features to simplify European EV charging across 35,000+ stations. - The app eliminates partner network markups and provides transparent billing, targeting user frustrations with fragmented charging experiences. - As Europe's EV market grows, Allego positions itself as a key infrastructure provider through thi

Bitget-RWA2025/12/09 00:52
Algo slips 0.52% as Allego unveils app designed to simplify EV charging

Exploring How Artificial Intelligence Shapes Higher Education and Tomorrow’s Job Market: Supporting STEM and Technical Training to Counteract the Effects of Automation

- AI is reshaping global economies, forcing higher education and vocational programs to rapidly adapt to automation-driven workforce demands. - Institutions prioritize "AI fluency" across disciplines, while STEM/vocational training addresses growing demand in AI-augmented roles like data analysis and software development. - OECD projects AI education investments could boost GDP, with the AI education market expected to grow from $7.05B in 2025 to $112.30B by 2034. - Federal funding initiatives and private

Bitget-RWA2025/12/09 00:22
Exploring How Artificial Intelligence Shapes Higher Education and Tomorrow’s Job Market: Supporting STEM and Technical Training to Counteract the Effects of Automation

The Growing Need for AI Professionals and How It Influences Technology Company Valuations

- Global AI talent demand surged in 2025, driving universities to expand AI curricula and industry partnerships. - Top institutions like MIT and Stanford prioritize ethical AI education, while international schools like Nanyang Tech boost AI research. - Universities with AI-focused endowments achieved 14-15.5% returns in 2025, outperforming traditional education assets. - Education ETFs like Leverage Shares +3x Long AI ETP rose 120% in 2025, tracking AI infrastructure growth and semiconductor demand. - AI

Bitget-RWA2025/12/09 00:04
The Growing Need for AI Professionals and How It Influences Technology Company Valuations
© 2025 Bitget