Japan Proposes 20% Crypto Tax & ETF Facilitation for Regulatory Modernization

The Financial Services Agency (FSA) of Japan has unveiled plans to overhaul the country’s crypto tax regulations, aiming for greater regulatory clarity and increased institutional participation in the market. Their proposed reforms include a flat 20% capital gains tax on crypto transactions and reclassifying digital assets as financial instruments, effective from 2026. This move aligns crypto taxation with established practices for stocks and bonds, potentially fostering a more robust and competitive environment for trading.