The Japan Financial Services Agency (FSA) plans to amend tax regulations on cryptocurrency, treating these assets the same as publicly traded stocks.
The development is believed to pave the way for domestic cryptocurrency ETFs.
According to Nikkei, the changes are expected for fiscal year 2026, with the aim of taxing crypto revenues at a 20% tax rate, placing them in a separate tax category.
Cryptocurrency is currently classified as “other income” and is subject to a progressive tax rate of up to 55%, excluding local taxes. Due to the new regulations, industry representatives are demanding that they carry forward the losses for three years.
The FSA’s plans also include regulations that will allow Japanese companies to easily launch local crypto ETFs. The agency is working on a bill in 2026 that includes crypto assets under the Financial Products and Exchange Act, defining them as “financial products” rather than “means of payment.”
These changes are consistent with the FSA’s plan to approve JPYC, Japan’s first stablecoin of circles. Stablecoin, published by Tokyo-based JPYC, aims to release 1 trillion yen (approximately $6.78 billion) within three years.
*This is not investment advice.
