Japan Slashes its Famous High Tax Rates on Digital Assets

The current system treats crypto profits as “miscellaneous income,” hitting top earners with a tax rate of up to 55%. That’s all set to change.

Under a new proposal from Japan’s Financial Services Agency (FSA), crypto gains would be taxed at a flat 20%, just like stocks, and investors could finally use their losses to offset future gains.

But the reforms don’t stop at taxes. By redefining crypto as a “financial product” instead of just a payment method, Japan is creating the legal foundation for a host of new offerings, including the country’s first domestic crypto ETFs.

This strategic pivot aims to make Japan a more attractive hub for blockchain innovation and investment, a vision further supported by the upcoming launch of its first officially regulated stablecoin.