Japan considers delaying separate crypto tax implementation to 2028

The Japanese government is considering delaying the introduction of a separate tax on cryptocurrency gains until 2028, Reuters reported. While there was initial discussion of a 2027 implementation if an amendment to the Financial Instruments and Exchange Act passed the Diet next year, the current consensus favors reforming the system after observing market conditions. The government has stated that a delay is necessary as investor protection measures are still considered inadequate. Currently, profits from crypto trading in Japan are classified as miscellaneous income and are taxed at a rate of up to 55% when combined with other earnings. Investors and the industry have been advocating for a separate tax rate of 20%, consistent with the tax on stock market gains.