Japan cuts crypto tax to 20%, enables crypto ETFs
6.6 Regulation Japan passes a bill to regulate crypto like stocks, cut tax on crypto gains to 20% from 2028, and allow crypto ETFs. The reforms aim to boost innovation and investor participation.
Japan's parliament has passed a landmark bill in the lower house to classify cryptocurrencies as financial products, aligning them with stocks under the country's regulatory framework. The legislation, pending upper house approval, is expected to take effect next year. A key feature of the bill is the reduction of the tax rate on crypto profits from a maximum of 55% to a flat 20%, with the new tax regime slated for 2028. The reforms also introduce stricter compliance rules, including penalties for insider trading and unregistered exchanges, and pave the way for regulated crypto exchange-traded funds (ETFs) based on assets like Bitcoin and Ethereum. Supporters believe these changes will provide regulatory certainty, foster innovation, and attract both retail and institutional investors. However, there are concerns about increased compliance burdens for smaller exchanges. The move is seen as a significant step in integrating digital assets into Japan's mainstream financial system and could have global implications.
