Japan Slashes Crypto Tax to 20% for Registered Assets in 2026

Japan plans to cut crypto tax to a flat 20% for registered digital assets in 2026, aligning with stock taxation. Only specified assets like Bitcoin and Ethereum are expected to qualify, with a three-year loss carry-forward introduced.

Japan is set to implement a major crypto tax reform in 2026, reducing the tax rate on gains from certain digital assets to a flat 20%, down from the current maximum of 55%. This change will align crypto taxation with that of stocks and investment trusts, aiming to encourage domestic trading and attract more businesses to the market. The lower rate will apply only to "specified crypto assets" handled by businesses registered under Japan’s Financial Instruments and Exchange Act, with major cryptocurrencies like Bitcoin and Ethereum expected to qualify. The reform introduces a three-year loss carry-forward system for qualifying crypto trades, allowing investors to offset future gains with past losses. However, assets outside the specified framework, including some tokens and peer-to-peer transactions, will not benefit from the new rate. The proposal still requires legislative approval and further clarification on which assets and activities will be included.