Japan’s latest move is pretty bold—the cryptocurrency tax rate is set to drop straight from 55% down to 20%!

As soon as the news broke, the market went wild. The Japanese government officially revealed the plan: to slash crypto gains tax down to the same level as stocks, with implementation as early as 2026. Just think about it—previously, if you made 1 million yen trading crypto in Japan, you had to pay 550,000 yen in taxes; now it’ll only be 200,000 yen. That’s a huge difference.

What does this mean? The official stance has changed. Japan’s previous high tax rate on crypto assets clearly discouraged involvement. Now, by actively lowering the tax and leveling the playing field, they’re basically recognizing crypto as a legitimate asset, just like traditional financial products. More importantly, the tax reform might also come with a more robust regulatory framework and better investor protection mechanisms—market normalization is a good thing for long-term growth.

From a global perspective, even traditionally conservative Japan is starting to relax regulations—if that’s not a clear signal, what is?

But let’s stay calm. There’s still a window until the policy takes effect, so don’t rush to go all in. You can start by paying attention to projects deeply tied to the Japanese market and gradually build your position. Also, compliance requirements will only get stricter, so taking shortcuts will become harder and harder. Personally, I think this could trigger a reallocation of Asian capital, and in the medium to long term, bullish sentiment will rise.

That said, a favorable policy doesn’t mean you can go in blindly. Volatility is always there, so position management is more important than any news. How big of an impact do you think this tax reform will have?