Japan Implements Flat 20% Cryptocurrency Tax, Aligns with Financial Markets

Japan is set to implement a groundbreaking flat 20% tax rate on cryptocurrency gains in 2026, aligning digital assets with traditional financial tools. This policy shift, driven by the Financial Services Agency (FSA), aims to simplify the taxation system and promote institutional participation within the crypto market. The new rule will be introduced alongside updated oversight rules for exchanges and issuers, impacting trading behavior and custody demand across the nation’s digital asset landscape.