Japan Implements Flat 20% Tax on Crypto Gains

Japan is enacting a new flat tax of 20% on profits earned from cryptocurrency investments, mirroring the rates applied to stocks and investment trusts. This change is intended to bring crypto taxation in line with traditional finance and encourage greater domestic participation in the crypto market. Currently, Japanese investors face a complex and progressive system that can lead to high tax burdens. By applying a uniform rate across all profits, Japan aims to simplify the tax process for individuals and increase investor confidence in the digital asset space.