Japan’s FY2026 Tax Reform to Reshape Crypto Asset Taxation
Japan’s Liberal Democratic Party and the Japan Innovation Party unveiled key details of the FY2026 Tax Reform Outline on December 19. The reform proposes significant changes to the taxation of crypto assets, reclassifying them as financial products rather than speculative assets—a shift long advocated by Japanese investors.
The new system may introduce separate taxation for crypto transactions, mirroring treatment of stocks and investment trusts. Currently, crypto gains are taxed as miscellaneous income with rates up to 55%. The reform leaves room for hybrid approaches where certain transactions remain under existing frameworks.
This overhaul reflects growing institutional recognition of digital assets. Market observers note parallels with South Korea’s 2025 crypto tax delay, suggesting Asia-Pacific jurisdictions are cautiously modernizing frameworks without stifling innovation.
