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Japan eyes 20% flat tax for crypto trades, path to ETF offering with tax code revision: report

Japan eyes 20% flat tax for crypto trades, path to ETF offering with tax code revision: report

The BlockThe Block2025/08/22 16:00
By:By Zack Abrams

Quick Take Japan’s Financial Services Agency plans to request a review of how the country’s tax code treats crypto, aiming to tax gains similarly to stocks and eyeing future crypto ETF offerings, according to a report from local outlet Nikkei. The agency is also expected to approve the country’s first domestically regulated yen-pegged stablecoin in the fall, as Japan looks to spur crypto adoption.

Japan eyes 20% flat tax for crypto trades, path to ETF offering with tax code revision: report image 0

Japan's Financial Services Agency (FSA) plans to request a review of the tax code's treatment of cryptocurrencies for the 2026 fiscal year, aiming to treat crypto more similarly to listed stocks, according to a report from local news outlet Nikkei. 

The request, slated for the end of August according to the report , will include moving crypto gains to a separate tax bucket, subject to a flat 20% tax rate. Industry firms have also asked for a three-year loss carry-forward as part of the taxation change. Currently, crypto income is treated as "miscellaneous income," with a progressive tax rate of up to 55%, not including local taxes. 

The FSA's proposal will also make it easier for Japanese firms to launch domestic crypto ETFs, as the country aims to boost the competitiveness of its crypto industry. Separately from the tax change, the FSA is planning a 2026 legislative bill to bring crypto under the Financial Instruments and Exchange Act as a "financial product" rather than a "means of payment" regulated under the Payment Services Act. 

The shift comes as the FSA also plans to approve the country's first domestically regulated yen-denominated stablecoin, JPYC, The Block recently reported . JPYC, issued by the Tokyo-based fintech company of the same name, aims to issue 1 trillion yen ($6.78 billion) worth of its stablecoin across three years. 


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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