Crypto Tax in Japan Drops Drastically, Check out the Changes!

Jakarta, Pintu News – Japan’s crypto market is set to undergo major changes with a planned tax reform to be implemented in 2026. According to a Nikkei report, the new policy aims to reduce the tax burden on crypto trading profits, which could change the way investors view digital assets.

Big Changes in Crypto Tax

Currently, profits from crypto trading are subject to a progressive tax that can be as high as 55%. However, with the proposed reforms, the tax rate will be simplified to 20%, equivalent to the rate for stocks and investment trusts.

This change is expected to make digital asset trading more cost-efficient for investors in Japan. The rate change is also expected to reduce hesitation among investors who previously avoided crypto exposure due to the high tax burden.

Also read: 3 Cryptos that Gained Over 20% at the End of the Year (12/31)

Policy and Regulatory Adjustments

These reforms are in line with updates to Japan’s Financial Instruments and Exchange Act, which aims to strengthen supervision and investor protection. The revised framework is expected to treat certain cryptocurrencies with clearer regulatory standards.

As such, crypto trading will operate closer to traditional financial markets. Additionally, this alignment could improve transparency and compliance among service providers.

Read also: 3 Signals from the Gold Market Indicating Bitcoin (BTC) is Nearing its ‘Bottom’

Portfolio Management and Investor Confidence

In addition to lower tax rates, the reform introduces a three-year loss carryforward rule. Investors can offset future gains against previous losses from crypto trading.

Therefore, portfolio management strategies may become more disciplined and long-term. This structure reflects existing equity market rules and may reduce speculative turnover. Industry experts see this change as a confidence builder.

Conclusion

With these changes, the crypto market in Japan is expected to grow more mature and be better integrated in personal asset allocation strategies. Regulatory clarity and a reduced tax burden are important steps that will encourage wider adoption among domestic and institutional investors.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• CoinEdition. Japan to Cut Crypto Taxes to 20% from 55% Under 2026 Reform Plan. Accessed on December 31, 2025
• Featured Image: Generated by AI