The Financial Services Agency of Japan plans to reform the cryptocurrency tax system, proposing a unified tax rate of 20%

ChainCatcher news, citing local Japanese media Nikkei, reports that the Financial Services Agency (FSA) of Japan plans to include cryptocurrency tax reform in its 2026 tax revision proposal.

The proposal is expected to combine tax changes with stricter regulations and may introduce ETFs linked to cryptocurrencies. The reform plan consists of two key parts.

First, it includes amending the tax law to classify cryptocurrencies in the same category as stocks instead of miscellaneous income. Second, it includes a legal amendment to reclassify cryptocurrencies as financial products, allowing the FSA to apply insider trading rules, disclosure standards, and investor protection measures under the Financial Instruments and Exchange Act.

Currently, Japan taxes cryptocurrency gains as "miscellaneous income" at a progressive rate, which, when local taxes are included, can exceed 50%. In contrast, stocks and bonds are subject to a flat tax rate of 20%.