Bitcoin News Today: Japan to Align Crypto Tax with Traditional Assets Starting 2026

Japan is set to undergo a landmark transformation in its cryptocurrency taxation system, as the Financial Services Agency (FSA) has proposed reclassifying crypto assets under the Financial Instruments and Exchange Act (FIEA), aligning them with traditional financial products like equities and bonds[1]. This shift, expected to be effective from 2026, aims to streamline the regulatory and tax landscape for digital assets, making Japan a more attractive hub for crypto investment and innovation.

Under the existing system, all profits from crypto transactions in Japan are categorized as “miscellaneous income,” subject to progressive tax rates ranging from 5% to 45% at the national level, with an additional 10% local inhabitant tax potentially pushing the effective rate as high as 55%[1]. This has made Japan one of the most heavily taxed jurisdictions for crypto investors globally. The new structure, however, will bring crypto taxation in line with traditional financial assets, offering greater clarity and potentially reducing the tax burden on crypto investors.

A key feature of the proposed system is the introduction of , allowing investors to offset crypto losses against future gains over a three-year period. Given the volatility inherent in crypto markets, this provision is expected to provide much-needed flexibility for investors to manage their tax liabilities more effectively[1].

The move aligns with Japan’s broader “New Capitalism” initiative, which seeks to position the country as an investment-driven economy. This regulatory evolution builds on Japan’s history of crypto leadership, including its status as the first major economy to recognize Bitcoin as a legal payment method in 2017 and its pioneering 2022 framework for stablecoins[1].

Notably, corporate adoption of Bitcoin is also on the rise. On July 7, 2025, Metaplanet became the fifth-largest corporate Bitcoin holder in Japan by acquiring 2,204 BTC, bringing its total holdings to 15,555 BTC. The company plans to leverage its Bitcoin reserves to acquire profit-generating businesses, with a digital bank in Japan being one of its initial targets[1]. Other Japanese corporations, including Nexon, Remixpoint, and ANAP Holdings, also hold Bitcoin on their balance sheets.

Japan’s regulatory evolution in the crypto space has been shaped by major historical events, including the 2014 Mt. Gox hack, the 2018 Coincheck breach, and subsequent regulatory reforms. These events prompted the FSA to implement a robust regulatory framework, including mandatory licensing, anti-money laundering (AML) compliance, and cybersecurity requirements for crypto service providers. In 2020, the FSA further refined the rules by separating custody services from exchanges, enhancing investor protection.

The proposed tax overhaul is expected to bring Japan’s crypto tax regime in line with major economies like the United States and the United Kingdom. If enacted, it will simplify the reporting process for investors and reduce the administrative burden associated with the current system. The change could also attract more institutional and retail investors to the Japanese market, bolstering the country’s position as a global leader in digital asset adoption.

Investors are advised to maintain detailed transaction records and stay updated on regulatory developments. As the FSA moves forward with formalizing the new regime, the crypto community in Japan is closely watching how the transition will affect investment strategies and market dynamics. The new tax structure could mark a turning point for crypto in Japan, reinforcing its status as a forward-thinking market in the global digital asset ecosystem.

Source: [1] Japans crypto tax overhaul: What investors should know in 2025 (https://cointelegraph.com/explained/japans-crypto-tax-overhaul-what-investors-should-know-in-2025?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)