Japan JBA Survey: Over 10% of young adults hold cryptocurrency
The Japan Blockchain Association (JBA) recently submitted a petition (for tax reform related to crypto assets) to the government and simultaneously released the results of a related survey, showing that over 10% of respondents hold cryptocurrency.
The JBA's survey was conducted from April 24 to 25, 2025, targeting 1,500 respondents residing in Japan (aged 20s to 60s), with males accounting for 60% and females for 40%, with an average age of 38.
The survey results show that currently about 13% of respondents hold cryptocurrency, equivalent to more than 1 in every 10 people holding crypto assets.
Source: Japan JBA Survey Japan JBA Survey: Over 10% of young adults hold cryptocurrency
One question in the survey was: "If the capital gains tax rate for cryptocurrencies were to drop to 20%, would you be willing to increase your investment amount?" Among the 191 respondents who already hold cryptocurrency, nearly 84% said they would be willing to increase their investment amount.
Source: Japan JBA Survey Japan JBA Survey: Over 10% of young adults hold cryptocurrency
Among the 1,309 people who do not hold cryptocurrency, 12% said they would be willing to start buying if the tax rate dropped to 20%, but another 88% of respondents would not purchase cryptocurrency for that reason.
Source: Japan JBA Survey Japan JBA Survey: Over 10% of young adults hold cryptocurrency
Regarding preferred taxation methods, 75% of respondents hope to adopt withholding tax (a mechanism for withholding taxes from profits in advance), rather than self-assessed taxation.
Source: Japan JBA Survey Japan JBA Survey: Over 10% of young adults hold cryptocurrency
The survey also showed that the main reasons for not holding cryptocurrency include "lack of understanding" (61%), "potential losses" (38%), "discouragement from surroundings" (13%), and "high taxes" (8%).
Japan's cryptocurrency tax system is unfavorable, with a maximum tax rate of 55% acting as an obstacle.
According to a report by the Japanese media (CoinPost), Yūzō Kanō, founder of the bitFlyer exchange and representative director of the JBA, pointed out at a press conference that the number of cryptocurrency accounts in Japan has exceeded 12 million, with a holding rate of 7.3% among investors, even surpassing traditional investment tools like forex trading and corporate bonds.
Currently, Japan's system treats the profits from selling cryptocurrencies as miscellaneous income, subject to comprehensive income tax. When combined with resident tax, the maximum tax rate can reach 55%.
The JBA presented five tax reform demands at a press conference:
Introduce separate taxation and loss carryforward deductions.
Improve the tax system related to the inheritance of crypto assets.
Tax deferral on cryptocurrency swaps.
Improve the tax system for donations of crypto assets.
Continue to review the future applicability of specific restrictions on the transfer of crypto assets.
The JBA's biggest demand is for the government to adopt a separate self-assessment taxation system similar to that for stocks. Yūzō Kanō emphasized: "High tax rates imposed by the government will not increase tax revenue; instead, funds will flow overseas."
He is concerned that Japan's high tax rates will lead wealthy cryptocurrency holders to leave, affecting the development of Japan's crypto asset industry.
Additionally, under the existing system, the government taxes at the point of exchange between crypto assets, and in the context of DeFi (decentralized finance), multiple exchanges often occur, making tax calculations very cumbersome.
The JBA's recommendation is that the Japanese government should only impose taxes at the moment of converting yen to crypto assets and ultimately converting back to fiat currency.
If Japan launches a Bitcoin spot ETF, it may impact the liquidity of the spot market.
The assets under management of the US Bitcoin spot ETF have exceeded $140 billion, indicating that cryptocurrency is becoming one of the asset allocation tools for general investors and institutions.
(Crypto City) Previously reported that the long-established commodity futures exchange in Japan, the Dojima Exchange, is said to have applied for listing Bitcoin futures, which is widely believed to pave the way for Japan to launch a Bitcoin spot ETF.
Further Reading:
Japan's first Bitcoin futures? It is reported that the Dojima Exchange is applying for listing to pave the way for crypto ETFs?
However, if Japan's current cryptocurrency tax system does not change, there may be a significant tax burden difference between investing in Bitcoin spot and ETF.
The JBA pointed out that due to the maximum 55% tax rate applicable to cryptocurrency spot trading in Japan, while ETFs only face about 20% of separate taxation, the huge tax burden difference could lead investors to shift massively towards ETFs, thereby weakening the liquidity of the spot market and hindering the healthy development of Japan's crypto asset industry.
The Financial Services Agency is considering including crypto assets as commodities and reducing the tax rate to 20%.
Currently, the Japanese Financial Services Agency is deliberating a plan to include crypto assets under the framework of the (Financial Instruments and Exchange Act). If passed, this will formally establish cryptocurrencies as legal "financial products."
According to (Chain News), the Financial Services Agency is also considering unifying the 55% capital gains tax on cryptocurrencies to match the 20% tax rate for stocks, funds, and other financial products. This policy has been included in the (New Capitalism Implementation Plan) approved in a cabinet meeting this June and is being studied by the Financial Services Agency.
Further Reading:
Japan makes a big move! Plans to list cryptocurrencies as financial products, reduce crypto taxes to 20%, paving the way for ETFs? A major turning point in Japan's crypto regulation? The Financial Services Agency proposes tax reform and system integration. Can it attract institutions?
"Over 10% of young adults in Japan hold cryptocurrency! But with a maximum tax rate of 55%, JBA calls for swift tax reform" This article was first published in "Crypto City"
