Japan Set to Cap Crypto Taxation at 20%, Ending “Miscellaneous Income” Status

The Japanese government is backing a legislative plan to cap the tax on cryptocurrency profits at 20%, finally moving digital assets out of the “miscellaneous income” category.

This brings the tax treatment of Bitcoin and other tokens in line with stocks and investment funds, which have long benefited from the lower, fixed rate.

The change, embedded within a larger investor-protection framework, aims to foster growth in the nation’s crypto sector.