Japan Considers Lowering Cryptocurrency Tax Rate to 20%
Japan’s ruling party has introduced a new proposal aimed at reforming the country’s cryptocurrency taxation system. The key element of this plan is a reduction in the tax rate on cryptocurrency profits from the current 55% to a more palatable 20%. The proposal is currently in the public consultation phase, allowing for feedback before finalization.
The suggested reforms also involve reclassifying digital currencies. Instead of being categorized under the Payments Services Act, they would be treated as financial products under the Financial Instruments and Exchange Act. This change aims to align the tax treatment of crypto assets with that of traditional securities, potentially lessening the tax burden on investors.
Akihisa Shiozaki, a prominent member of the House of Representatives, is a leading voice in this initiative. He emphasized that the reform seeks to stimulate market activity, bolster investor safeguards, and establish a clearer tax structure for cryptocurrency-related earnings.
Recent adjustments to Japan’s crypto tax regulations demonstrate the government’s commitment to modernizing its approach. Reforms implemented last December included an exemption from taxes on unrealized gains for corporations holding crypto assets for extended periods. Industry experts have largely welcomed this change, viewing it as a positive move toward integrating digital assets into mainstream investment practices.
The government’s proposal is subject to public discussion until March 31. Following this period, it will be submitted to the Financial Services Agency (FSA) for further evaluation. The FSA has announced its intention to publish additional regulatory guidelines on cryptocurrency matters by June.
| Aspect | Details |
| Tax Rate Reduction | From 55% to 20% |
| Reclassification | Transition from the Payments Services Act to the Financial Instruments and Exchange Act |
| Public Consultation | Open until March 31 |
| Next Steps | Review by the Financial Services Agency |
Maxwell Reed is the first editor of Cryptovista360. He loves technology and finance, which led him to crypto. With a background in computer science and journalism, he simplifies digital currency complexities with storytelling and humor. Maxwell began following crypto early, staying updated with blockchain trends. He enjoys coffee, exploring tech, and discussing finance’s future. His motto: “Stay curious and keep learning.” Enjoy the journey with us!