To boost its crypto market competitiveness and attract more investment, Japan’s Financial Services Agency (FSA) is proposing major reforms. A new flat tax of 20% will be imposed on crypto gains starting in 2026, aligning with how stock and bond profits are taxed. This move aims to facilitate the launch of domestic cryptocurrency ETFs and boost Japan’s standing as a global leader in digital assets. The FSA’s changes are designed to align cryptocurrency taxes with traditional financial products, potentially opening up new avenues for ETF launches and attracting institutional investors. 2026 will see significant regulatory shifts as Japan seeks to integrate crypto into its financial system more closely.