Japan Introduces Flat Tax Rate on Crypto Profits: A Major Regulatory Shift

Japan has taken a significant step towards regulating the cryptocurrency industry by proposing a 20% flat tax rate on crypto profits. This move aligns crypto gains with investment trust and stock taxes, potentially boosting investor confidence in Japan’s market. Currently, the progressive tax system can reach a high of 55%, discouraging domestic trading among Japanese investors. 2026 tax reforms will implement this new framework, splitting 5% for regional authorities and 15% for the government.