Japan Government Aligns Crypto Taxation with Stocks, Sets New Flat Rate of 20%

Japan’s government has signaled support for a significant overhaul of crypto taxation, aiming to harmonize rules with those of traditional financial products. The proposed tax change would introduce a uniform 20% rate across the board, aligning with existing regulations for equities and investment funds. The Financial Services Agency (FSA), which first floated this proposal in mid-November, now has government backing from both the ruling coalition and political parties. This move aligns with the FSA’s aim to enhance investor protection while simplifying tax reporting.