Japan plans to implement a separate tax system for crypto assets starting in 2028

Sources in the Japanese political arena have revealed that a proposal has been made regarding when Japan will transition to a separate self-assessment tax system for crypto assets (virtual currencies), with plans to implement it starting from January 2028.

Although the market expects the amendment to the Financial Instruments and Exchange Act to pass in the National Diet next year, and the new tax system may be implemented within 2027, the Japanese government prefers to carry out tax reform after confirming the market conditions under the Financial Instruments and Exchange Act. Currently, profits from crypto asset trading in Japan are classified as "miscellaneous income," combined with other income such as wages, with a maximum tax rate of up to 55%. Investors and industry groups have long called for it to be changed to a separate tax system of 20%, similar to that of stocks. Government officials have stated that the delay is mainly due to the need to improve "investor protection-related measures."