What is the new tax structure offered by Japan? And how does he compare himself to the in force tax structure?
Cryptographic investors in Japan are preparing for a major taxation of tax in the country. On June 24, the Financial Financial Services Agency (FSA) proposed the classification of cryptographic assets as financial products, similar to shares, obligations, etc. This reclassification would put the cryptographic assets under the reach of the financial financial law (FIEA), a regulatory framework applicable to traditional financial products of the country.
Japan has long been recognized as a global pioneer in the adoption and regulation of cryptocurrencies. 2025 promises to be a pivotal year for digital assets in the fifth world economy. The FSA proposal is aligned with the broader initiative of the “new capitalism” of the government, which aims to transform the nation into an investment -oriented economy. By aligning cryptographic taxation on traditional financial products, Japan aims to solidify its position as a leading hub for digital assets.
In the existing tax system in Japan, all the benefits of cryptocurrency transactions are classified as a “various income”. This implies that, contrary to the benefits of real estate or real estate, negotiation, expenditure or crypto gain gains are subject to progressive tax rates.
These rates generally vary from 5% for lower income than a high milk of 45% for high employees. Regarding the local residential tax at 10%, the higher rate can reach 55%, making it one of the highest cryptographic taxes in the world.
You will find below a comparison of the existing tax regime for cryptographic assets and the proposed tax regime:
The activities that trigger taxation are:
Here, it should be noted that investors buy and bang cryptography, or even the transfer of assets between their portfolios, do not trigger a tax event.
In addition to variations in the tax rate, the most significant change is the capacity of investors to allow the transport of losses for their cryptographic investments. This implies that investors can compensate for crypto losses against future gains up to three years. Given the volatile nature of cryptographic markets, it would offer flexibility essential to investors.
Did you know? On July 07, 2025, the Japanese company Metaplanet has become the fifth largest Bitcoin company holder (BTC) with a purchase of 2,204 BTC. Bitcoin Treasury Company now holds 15,555 BTC, with an average purchase price of around $ 99,985 each. Metaplanet plans to take advantage of its growing Bitcoin stock to acquire for -profit companies, a digital bank in Japan being one of the initial objectives. The other Japanese companies that have Bitcoin in their balance sheet are Nexon, RemixPoint and Anap Holdings.
A chronology of the enhanced regulations of Japan cryptocurrencies
The collapse of the Japanese exchange MT. Gox was a monumental moment for the ecosystem of digital assets. In February 2014, an internal document disclosed revealed that the exchange had become a victim of a longtime hack, losing 744,408 BTC, which represented 6% of the BTC in circulation at the time. This hack highlighted the lack of surveillance of the crypto in the country and prompted regulators to examine this expanding ecosystem more closely.
You will find below a calendar of the main regulatory events of cryptography in Japan:
- May 2016: In response to the MT. Gox incident, the FSA of Japan establishes a regulatory regime for cryptographic asset service providers under the Payment Services Act (PSA).
- April 2017: The 2016 changes come into force, defining cryptocurrencies under Japanese law. Exchanges must register with the FSA, comply with AML / KYC standards and implement strict cybersecurity practices.
- September 2017: The FSA of Japan approves 11 scholarships, officially marking the start of the regulated cryptography trade in the country.
- January 2018: Coincheck’s cryptocurrency exchange undergoes piracy resulting in a loss of around $ 530 million in nem tokens at the time, which triggered even more strict regulatory monitoring.
- April 2018: After the regulatory tightening, crypto exchanges come together to create Japan Virtual Device Banges Association (JVCEA).
- October 2018: The FSA grants Jvcea’s self -regulation status.
- May 2020: The revised law on the exchange of PSA and financial instruments (FIEA) takes effect, further clarifying the regulation of cryptography. As part of the FIEA, crypto child care services are introduced, thus separating trade in exchanges and adding investor protections.
- June 2022: The Japanese Parliament introduces new regulations allowing approved financial institutions to issue stable -co -for -supported by Fiat, forcing issuers to fully support stablescoins with reserves held at national level in Yen.
- April 2023: The Japanese liberal democratic party issues a white paper describing strategies for the adoption of web3 and blockchain, recommending adjustments to tax policies and approval executives for negotiated stock markets (ETF).
- June 24, 2025: The FSA proposes the reclassification of cryptographic assets as traditional financial products, thus subjecting them to a new tax regime. The new diet should be applicable from 2026.
Did you know? Japan was the first country to recognize Bitcoin as a legal payment method within the framework of the PSA law in April 2017.
How is the tax structure of Japan compared to other major economies?
Historically, Japan has had one of the strictest tax regimes for cryptographic investors. But with the adoption of the rules newly proposed by the FCA, the country’s financial regulators are about to create one of the most user -friendly tax structures in the world.
You will find below a table comparing the fiscal structure proposed by Japan for cryptographic assets to the current tax structure for other significant economies such as the United States and the United Kingdom:
If the FSA proposal is adopted for 2026, Japan will move to a simpler and friendly structure for investors. The tax landscape of the country’s cryptography is about its greatest transformation to date.
Meanwhile, it is important that investors have specific newspapers (including activity both on cryptographic portfolios and crypto exchanges), to submit deposits in time and to keep an eye on any regulatory ad. Once past, the new tax regime could change the situation for cryptographic investors in the land of the rising sun.
