Japan to Implement Separate 20% Crypto Tax in 2028 Amid Investor-Protection Reform Delays

COINOTAG News reports that sources within Japanese political circles have proposed a separate self‑assessment taxation system for cryptocurrencies, with a rollout targeted for January 2028. The plan seeks to formalize a distinct regime for digital assets, potentially simplifying the current tax treatment of crypto gains.

Market participants expect the Financial Instruments and Exchange Law Amendment to pass in the Diet in the near term, with the new tax framework possibly taking effect after the amended law is enacted. The government has signaled a preference to advance tax reform only after assessing market conditions under the updated framework.

Currently, profits from cryptocurrency transactions in Japan are taxed as miscellaneous income, blended with other sources such as wages, with a top rate of 55%. Investor groups have advocated for a separate 20% tax regime akin to equities, while officials say reforms must be accompanied by stronger investor protection measures, contributing to the delay.