Japan Implements Flat 20% Tax on Crypto Gains: Easing Regulations for Institutional Investors

Japan has announced a major overhaul of its cryptocurrency tax system, introducing a flat 20% rate on gains starting in 2026. This change aligns the taxation of cryptocurrencies with traditional financial products like equities and investment trusts, aiming to boost market activity and attract institutional investors. The reform simplifies the tax structure and brings cryptocurrencies into alignment with regulated financial instruments. This move is anticipated to stimulate trading activity within Japan’s domestic market, while also potentially drawing in larger players and shaping a more integrated crypto ecosystem.