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Japan's Financial Services Agency plans to reform the cryptocurrency tax system, proposing a 20% flat tax rate

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2025-08-23 08:08:43
According to a local Japanese news outlet Nikkei coverage cited by BeInCrypto, Japan's Financial Services Agency (FSA) plans to include cryptocurrency tax reform in its 2026 tax revision plan. The plan is expected to incorporate tax changes and stricter regulation, with the possible introduction of cryptocurrency-linked ETFs. The reform plan contains two key parts.
First, it includes amending the tax code to change cryptocurrencies from a comprehensive tax to the same category as stocks. Second, it includes a legal amendment to reclassify cryptocurrencies as financial products, enabling the FSA to apply insider trading rules, disclosure standards, and investor protections under the Financial Instruments and Exchange Act.
Currently, Japan taxes cryptocurrency gains as "miscellaneous income" at a progressive rate that can exceed 50 per cent once local taxes are included, while stocks and bonds are subject to a flat tax of 20 per cent.
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