Japan Eyes 20% Crypto Tax, Bitcoin ETF, and Stablecoins by 2026: Full Details
The post Japan Eyes 20% Crypto Tax, Bitcoin ETF, and Stablecoins by 2026: Full Details appeared first on Coinpedia Fintech News
Japan is pushing for sweeping financial reforms as part of its goal to become an “asset management nation.”
According to a report from Nikkei, the Financial Services Agency (FSA) is advancing proposals on tax reforms and reclassifying digital assets, potentially paving the way for cryptocurrency exchange-traded funds (ETFs).
Japan Aims to Cut Crypto TaxesJapanese crypto investors currently face some of the toughest tax rules in the world. Profits from digital assets can be taxed as high as 55%, far higher than the flat 20% applied to stocks and bonds.
The FSA is proposing to bring crypto under that same 20% bracket and let investors carry forward losses for three years. The move is meant to cut the burden on traders, boost market activity, and rebuild trust.
Japan is moving to classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act. This would align digital assets with stocks and bonds, enabling stricter oversight on insider trading and disclosure, and make way for a spot Bitcoin ETF.
The State of Crypto Adoption in JapanWhile Japan’s crypto market is growing, domestic trading is set to double from $66.6 billion in 2022. But the retail adoption remains weak, with 88% of residents never owning Bitcoin. Heavy taxes and regulatory uncertainty have been the key barriers.
“In Japan, 88% have never owned bitcoin.”
“In El Salvador, 28% have never owned bitcoin.”
(New research by The @CornellBitcoin Club) pic.twitter.com/x0nla9MaHm
