Japan to propose 20% flat tax on crypto gains from 2026

The Japanese government and the ruling party are planning to introduce a separate tax system for cryptocurrency trading income starting in 2026, NHK reported. The proposal would apply a flat 20% tax rate, replacing the current comprehensive system where crypto gains are combined with other income and taxed at rates of up to 55%. Specific details are set to be included in next year's tax reform proposal. This move follows an earlier announcement by Japan's Financial Services Agency (FSA) of its plan to reclassify 105 cryptocurrencies, including BTC and ETH, as financial products, paving the way for the significant tax reduction.