Japan Proposes Flat 20% Crypto Tax by 2026: Boosting Market Activity

The Financial Services Agency (FSA) of Japan has proposed a major tax overhaul for the cryptocurrency market, aiming to stimulate growth and encourage investment. Starting in 2026, profits from crypto transactions will be taxed at a flat rate of 20%, replacing the existing progressive system that previously reached up to 55%. This move is designed to align cryptocurrencies with traditional securities within Japan’s financial landscape and could have positive consequences for both domestic and global markets. The reform aims to balance innovation with investor protection, but its impact remains to be fully understood.