Japan plans to impose a 20% unified tax on Crypto Assets! Tax reforms may pave the way for Crypto ETF and stablecoin.

Japan’s crypto market may face a significant regulatory turning point. According to a report by Nikkei, the Financial Services Agency (FSA) of Japan plans to promote tax reform in the fiscal year 2026, integrating Crypto Assets gains into the same tax system as stocks, with a unified tax rate of 20%. At the same time, this initiative may pave the way for the issuance of domestic Crypto Assets ETFs and yen stablecoins, enhancing Japan’s position in the global digital asset competition.

Tax Reform: From “Miscellaneous Income” to “Separate Taxation”

Currently, the earnings from cryptocurrency in Japan are classified as “miscellaneous income,” subject to progressive tax rates, with a maximum of 55% (excluding local taxes), which imposes a heavy tax burden on investors.

According to the new proposal by the FSA, Crypto Assets gains will be classified into a separate tax category, subject to a unified tax rate of 20% similar to that of listed stocks, and allow for the carryforward of losses for three years. This move will significantly reduce the tax burden on investors and is expected to attract more institutions and retail investors to participate in the market.

Crypto Assets ETF may become a reality

The FSA’s tax reform proposal will also promote the launch of domestic cryptocurrency ETFs in Japan. According to the plan, legislation will be established in 2026 to incorporate cryptocurrencies under the regulation of the Financial Instruments and Exchange Act, defining them as “financial products” rather than as “payment instruments” under the current Payment Services Act.

This change will provide a legal basis for investment products such as ETFs, making it easier for Japanese companies to launch compliant encryption investment tools, thereby enhancing market liquidity and transparency.

Stablecoin JPYC is coming soon

In addition to tax reforms and ETFs, Japan also plans to approve the first domestically regulated yen-denominated stablecoin JPYC in the fall.

The stablecoin is issued by Tokyo-based fintech company JPYC, aiming to issue tokens worth 1 trillion yen (approximately 6.78 billion USD) within three years for payments, remittances, and cross-border transactions. This will be an important step for Japan in promoting the adoption of digital currency and will also help in the integration of Crypto Assets with the traditional financial system.

Impact and Outlook

If the tax reform is implemented, Japan will become one of the few major economies with a low tax rate on crypto assets and allowing ETF, which is attractive to international capital and Web3 companies.

For investors: Reduced tax burden and enhanced investment flexibility

For enterprises: The launch of compliant ETFs and stablecoin products will expand the business scope.

To the market: Expected to attract more international trading volume and institutional capital inflow.

However, whether the reform can progress as scheduled still depends on the legislative progress of the Japanese parliament and the implementation of regulatory details.

Conclusion

Japan is trying to reshape its competitiveness in the global crypto market through tax reform, ETF promotion, and stablecoin issuance. If the plan is successfully implemented, 2026 may become a turning point for Japan’s crypto industry and could trigger a new wave of crypto innovation in the Asia region. For more international crypto policies and market analysis, please follow the official Gate platform.