Japan to Introduce Flat 20% Crypto Tax, Boosting Market Potential

Japan’s Financial Services Agency (FSA) is proposing a significant tax reform for the cryptocurrency sector. Aiming to simplify regulations and boost market activity, the plan will replace the existing progressive system with a flat 20% tax on capital gains by 2026. This move seeks to increase investor interest in Japan’s crypto market, particularly encouraging investment in exchange-traded funds (ETFs). The FSA’s proposal could lead to increased trading volume as well, attracting both domestic and international capital.