The Japan Financial Services Agency (FSA) plans to make changes to tax regulations on cryptocurrencies and evaluate these assets similarly to publicly traded stocks.
This development is thought to also pave the way for crypto ETFs in the country.
According to Nikkei's report, this change is anticipated for the 2026 fiscal year, aiming to categorize crypto gains under a separate tax category and apply a fixed tax rate of 20%.
Currently, crypto income is classified as 'other income' and is subject to a progressive tax rate of up to 55% excluding local taxes. With the new regulation, industry representatives are also requesting a three-year loss carryforward right.
The FSA's plans include regulations that will make it easier for Japanese companies to launch local crypto ETFs. The agency is working on a bill that anticipates defining crypto assets as a 'financial product' rather than a 'means of payment' by bringing them under the Financial Instruments and Exchange Act in 2026.
These changes coincide with the FSA's plans to approve JPYC, the first regulated stablecoin based on the yen in Japan. This stablecoin, to be issued by the Tokyo-based JPYC company, aims to be launched with a value of 1 trillion yen (approximately 6.78 billion dollars) within three years.
Stay tuned for updates.
