ChainCatcher news, citing local Japanese media Nikkei, reported that the Financial Services Agency (FSA) of Japan plans to include cryptocurrency tax reform in its 2026 tax revision proposal.
The proposal is expected to combine tax changes and stricter regulations, and may introduce ETFs linked to cryptocurrencies. The reform plan consists of two key parts.
First, it includes amending the tax law to classify cryptocurrencies the same as stocks, rather than as miscellaneous income. Second, it includes a legal amendment that reclassifies cryptocurrencies as financial products, allowing the FSA to apply insider trading rules, disclosure standards, and investor protection measures according to the Financial Instruments and Exchange Act.
Currently, Japan taxes cryptocurrency gains as "miscellaneous income" at a progressive tax rate, which can exceed 50% once local taxes are accounted for. In contrast, stocks and bonds are subject to a uniform tax rate of 20%.
