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

Japanese political sources 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 Japan's 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 push for tax reform only 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 main reason for the delay is that "measures related to investor protection still need to be improved."