Japan Explores New Crypto Tax Structure in 2026 Reform Blueprint

Japan's ruling coalition has unveiled a tax reform proposal that could redefine the treatment of crypto assets by 2026. The blueprint, released by the Liberal Democratic Party and the Japan Innovation Party, signals a potential shift toward classifying digital assets as speculative income—a move that would integrate cryptocurrencies more deeply into the nation's financial system.

The plan examines aligning crypto taxation with frameworks for stocks and investment funds, effectively placing digital assets under Japan's capital markets structure. This overhaul WOULD require investors to adopt new methods for reporting and managing crypto-related income, including gains from spot trading, derivatives, and exchange-traded funds.

Tax structure has emerged as a central policy challenge. Policymakers are considering separate tax treatments for different forms of crypto income, reflecting growing institutional recognition of digital assets' role in modern finance.