Japan’s Financial Services Agency (FSA) plans to amend tax regulations for cryptocurrencies, treating these assets similarly to publicly traded stocks.
It is thought that this development could pave the way for cryptocurrency ETFs in the country.
According to Nikkei, this change is envisaged for fiscal year 2026 and aims to tax crypto earnings at a flat 20% rate, placing them in a separate tax category.
Currently, crypto income is classified as “other income” and subject to progressive tax rates of up to 55%, excluding local taxes. With the new regulation, industry representatives are also requesting a three-year loss carryforward.
The FSA’s plans also include regulations that would make it easier for Japanese companies to launch local crypto ETFs. The agency is working on a draft law that would include crypto assets under the Financial Instruments and Exchange Act in 2026, defining them as “financial products” rather than “payment instruments.”
These changes align with the FSA’s plans to approve JPYC, Japan’s first regulated yen-denominated stablecoin. The stablecoin, issued by Tokyo-based JPYC, aims to launch 1 trillion yen (about $6.78 billion) within three years.
*This is not investment advice.