according to the materials of the site - By Cryptocurrency Press
The Financial Services Agency of Japan (FSA) proposes to introduce a fixed tax rate on cryptocurrencies to stimulate the market
The Financial Services Agency of Japan plans to implement a tax reform in 2026, replacing the 55% progressive tax on cryptocurrencies with a fixed rate of 20%, which will enhance the growth potential of the sector.
This reform aims to increase the attractiveness of the Japanese cryptocurrency market by stimulating investments, particularly in ETFs, which could lead to increased trading volumes.
Under the leadership of Finance Minister Katsunobu Kato, the FSA is working, among other things, on the reclassification of cryptocurrencies in accordance with the Financial Instruments and Exchange Act.
The proposed tax change could stimulate investment growth in Japan's crypto sector. It is also aimed at simplifying the tax system, attracting both domestic and international capital to expand the market.
The financial implications include increased liquidity and encouraging financial institutions to list cryptocurrency ETFs. This shift could stimulate institutional flows and enhance market dynamics.
Current data on blockchain activity is lacking; however, an increase in trading volumes is expected. The tax reform for cryptocurrencies in Japan is similar to initiatives in countries like Korea and Singapore, leading to increased market activity.
Potential outcomes include financial growth, adjustments to the regulatory framework, and technological advancement. Historical trends show that optimized tax structures can facilitate market expansion and attract investors, particularly in digital assets such as BTC and ETH.
By transitioning to a fixed tax rate of 20%, we aim to stimulate the development of Japan's cryptocurrency sector and strengthen our position as a global leader in this field.
