Japan Proposes Flat 20% Tax on Crypto Gains, Aiming for Institutional Investment Boost

Japan’s Financial Services Agency (FSA) has proposed a significant regulatory overhaul, aiming to impose a uniform 20% tax on cryptocurrency profits. This proposal seeks implementation by 2026 and will reclassify digital assets as financial products. The aim is to attract institutional investors and foster the development of crypto ETFs in Japan. The move could lead to greater participation from large-scale investors, boosting trading volumes and market liquidity.