Tax Reform Reshapes Japan's Crypto Landscape: A Closer Look at Emerging Winners

ser_we_are_early · 2026-01-05T14:42:28+00:00

Japan's introduction of a 20% flat tax on digital asset gains starting 2026 is creating positive market momentum. Key projects like Monad, DeepSnitch AI, and Avici are gaining traction, signaling a new growth phase in Japan's crypto landscape.

ser_we_are_early

2026-01-05 14:42:28

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Japan’s shift toward a more favorable 20% flat tax rate on digital asset gains—replacing the previous 55% miscellaneous income tax framework—has catalyzed significant market momentum starting from 2026. This regulatory overhaul is already rippling through the ecosystem, with investors recalibrating their positions ahead of the new framework’s implementation.

Market Response: Three Projects in the Spotlight

Monad’s Impressive Debut

Following its mainnet activation, Monad has captured investor attention with its token trading at $0.028, backed by support from prominent ventures including Paradigm and Coinbase Ventures. The high-throughput Layer 1 blockchain’s performance reflects growing confidence in novel scaling solutions within the crypto infrastructure space.

DeepSnitch AI’s Strong Presale Momentum

DeepSnitch AI has demonstrated robust community interest with its presale breaking through $650,000. Slated for launch in January 2026, this platform leverages artificial intelligence to monitor large holder movements and identify potentially fraudulent activities on-chain, addressing a key pain point for market participants seeking enhanced security and transparency.

Avici’s Explosive Price Action

Avici has emerged as one of the standout performers, with its price exploding approximately 1,700% throughout November. Market speculation links this surge to anticipated announcements regarding a potential collaboration with MoonPay, signaling possible integration into major payment infrastructure.

The Broader Context

The impending tax normalization in Japan is expected to unlock fresh capital flows into the sector by substantially reducing the effective cost of holding and trading crypto assets. With a significantly lower tax burden compared to the previous regime, institutional and retail investors alike may view this environment as more conducive to portfolio expansion and long-term positioning—particularly for projects like Avici and others positioned to benefit from increased market participation.

This convergence of regulatory tailwinds and innovation-driven project developments suggests Japan’s crypto market is entering a new growth phase.

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