The Japanese government supports reducing the tax on profits from Crypto Assets to a fixed rate of 20%.

According to ChainCatcher news and Nikkei Asia, the Japanese government has supported changing the cryptocurrency profit tax rate from the current highest tiered tax rate of 55% to a uniform fixed rate of 20%, aligning it with stocks and other financial products. This tax reform will be part of a proposal by the Financial Services Agency (FSA) and is planned to be submitted to the National Diet in early 2026. The Japan Blockchain Association (JBA) has been advocating for this for nearly three years, believing that the current high tax rate hinders the development of the domestic crypto market. The new tax system will be implemented alongside a stricter investor protection framework, including prohibiting trading based on non-public information and strengthening information disclosure requirements.