Japan to Lower Crypto Taxes: Flat 20% Rate Proposed to Boost Cryptocurrency Industry

Japan’s government is planning a major tax reform for cryptocurrency, aiming to reduce burdensome rates and boost the local crypto industry. Currently, crypto income faces a steep graduated tax rate of up to 55%. The new plan proposes switching to a flat 20% tax rate, mirroring existing regulations for stocks and financial investments. This change is part of a broader tax reform package by the Financial Services Agency (FSA), scheduled to be submitted to Japanese parliament in early 2026. The aim is to offer relief to crypto businesses struggling with high tax burdens, fostering greater innovation and growth within the country’s crypto ecosystem.