Catenaa, Monday, August 25, 2025-Japan’s Financial Services Agency plans to seek a tax code revision that would apply a flat 20% rate on cryptocurrency gains starting in the 2026 fiscal year, according to a report by Nikkei.
The change would align crypto taxation with the rules already used for listed stocks. Current regulations classify digital asset income as miscellaneous income, subject to progressive rates as high as 55 percent plus local levies.
Industry groups have also requested a three-year loss carry-forward, a treatment available to equities but not yet applied to cryptocurrencies.
The agency’s proposal is expected to be submitted at the end of August.
Officials see the shift as a way to strengthen Japan’s position in digital finance while reducing tax burdens on investors.
Alongside the tax overhaul, the agency is preparing a legislative measure to bring cryptocurrencies under the Financial Instruments and Exchange Act as financial products, instead of treating them solely as means of payment under the Payment Services Act.
This step is intended to give firms a clearer regulatory framework for launching domestic exchange-traded funds tied to digital assets.
In addition, regulators are expected to approve the country’s first yen-pegged stablecoin in the fall.
JPYC, issued by a Tokyo-based fintech firm, has plans to distribute as much as one trillion yen, or about 6.8 billion dollars, over the next three years.
Analysts say the combined measures could help attract both domestic and global investment into Japan’s growing digital asset market.
