The Japanese government supports reducing the cryptocurrency profit tax to a fixed rate of 20%

According to Nikkei Asia, the Japanese government has supported changing the cryptocurrency profit tax rate from the current progressive rate of up to 55% to a unified fixed rate of 20%, aligning it with other financial products such as stocks.

This tax reform will be part of a proposal from the Financial Services Agency (FSA) and is planned to be submitted to the Diet in early 2026. The Japan Blockchain Association (JBA) has been advocating for this for nearly three years, arguing 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, which includes prohibiting trading based on non-public information and strengthening disclosure requirements.