Japan Announces New Flat 20% Crypto Tax Rate in a Regulatory Overhaul

Japan’s government is poised to introduce a major change in its approach to cryptocurrency taxation, with a new flat rate of 20% set to replace the existing complex system. This move aims to simplify tax regulations and boost investment in Japan’s burgeoning crypto market. The new 20% rate will apply to digital asset gains starting in 2026, effectively replacing a previous structure that combined crypto profits with other income like salary, leading to higher tax rates.