Japan Aims for Crypto Parity with Stocks, Unveils Plans for ETFs by 2026

The Financial Services Agency (FSA) in Japan is proposing sweeping reforms to its crypto tax code, aiming to align gains more closely with stock investments and pave the way for exchange-traded funds (ETFs). By pushing for a flat 20% tax rate on cryptocurrency gains by 2026, the FSA seeks to bring the system into line with equities. Currently, investors face progressive tax rates on crypto trading profits. This new framework would allow for ETFs under the Financial Instruments and Exchange Act, a move that aims to strengthen Japan’s position in the digital asset market.