What is Japan’s new proposed structure? And how does it compare the prevailing tax structure?
Crypto investors in Japan are working for a major tax-up in the country. On 24 June, Japan’s Financial Services Agency (FSA) proposed to classify Crypto Assets as financial products, similar to equity, bonds, etc. This re -ization will put Crypto Assets under the scope of financial devices and exchange act (FIEA), which is applied to a regulatory structure which is applied to traditional financial products.
Japan has long been recognized as a global leader in the adoption and regulation of cryptocurrency. 2025 is an important year for digital assets in the world’s puffy economy. The FSA proposal is the alignment of the government’s comprehensive “new capitalism” initiative, which aims to change the nation investment-operated economy. By aligning crypto taxation with traditional financial products, Japan aims to strengthen its occupation as a major hub for digital assets.
In the current tax regime in Japan, all benefits from cryptocurrency transactions are classified as “diverse income”. This suggests that unlike profits or real estate, profit from trading, spending or crypto -making progress is subject to income tax.
These rates typically range from 5% to 45% for the highest earnings for low income. 10% of local residents can have an accounting for tax, effective high rates may be higher as 55%, one of the highest crypto taxes in the world.
Below is the comparison of the current tax for the Crypto assets and the proposed tax government:
There are activities that trigger taxation:
Here, it is noteworthy that investors buy crypto and hoist them, or even transfer property to their walls, not triggering the event.
In addition to changes in tax rate, the most important change is the ability to allow investors to pursue losses for their crypto investment. This suggests that investors can compensate for the loss of crypto against future benefits for up to three years. Considering the unstable nature of the crypto markets, it is a wound-essential flexibility for investors.
Do you know On July 07, 2025, the Japanese company Metaplanet became a corporate bitcoin treasury company, now about $ 99,985 is 15,555 BTC with an average purchase price of each. Metaplanet has planned to avail its glory bitcoin stockpile to achieve profit -making businesses, one of the initial targets of digital restrictions in Japan. Other Japanese companies who own bitcoins on their balance sheet are Nexon, Remixpoint and ANAP holdings.
Japan’s developed cryptocurrency regulations
The collapse of Japanese Exchange Mount Gox was a memorial moment for digital assets ecosystem. In February 2014, an leaks were internal revived that the Exclusion has a video-ranging hack, which loses 744,408 BTC, which was 6% for 6% of BTC at that time. This hack underlined the lack of crypto oversight in the country and triggered regulators to closely look at this rapidly extended ecosystem.
Below is a timeline of major crypto regulatory events in Japan:
- May 2016: In response to MT. The GOX event establishes a regulatory regime for the Crypto Asset Service under the FSA Payment Services Act (PSA) of Japan.
- April 2017: Under the Japanese law, amendments from 2016 are effective, defining cryptocurrency. Exchanges have to register with FSA, follow AML/KYC standards and strict cyber security practices.
- September 2017: Japan’s FSA approves 11 exchanges, officially marking the onset of regulated crypto trading in the country.
- January 2018: The Cryptocurrency Exchange Coinchec is suffering from a hack, resulting in a loss of about $ 530 million in the NEM tokens at that time, even the strict regulatory oversight was triggered.
- April 2018: After tightening the regulator, the Crypto Exchange comes together to create Japan Virtual Currency Exchange Association (JVCEA).
- October 2018: FSA JVCEA grants the self-control situation.
- May 2020: The revised PSA and Financial Instrument Exchange Act (FIEA) effectively clarify crypto regulation. Under FIEA, crypto detention services are introduced, thus separating the detention businesses from exchanges and investigation is added.
- June 2022: The Japan’s Parliament introduced the new rules, allowing licensed financial institutions to issue fiat-supported stabechoin, which requires the issuers to return to the stabecoin with domestic reservation in the yen.
- April 2023: The Japanese Liberal Democratic Party designs a white paper for the web 3 and the blockchain adoption, recommends adjustment in the approval of tax policies and exchange-fund funds (ETFs).
- June 24, 2025: The FSA proposes to regenerate the crypto assets as traditional financial products, thus subject to a new tax regime. The new rule is expected to be implemented from 2026.
Do you know Japan was the first country to recognize bitcoin as a legal payment method as part of the PSA Act in April 2017. For Stabelcoin in June 2022.
How does Japan’s tax structure compare with other large economies?
Historically, Japan is one of the most strict tax regime for Crypto investors. But with the passage of new proposed rules by FCA, the country’s financial regulators have the most outbreaks of investors in the world.
Below is a table comparing Japan for Crypto assets for current tax structure for other size qualified economies such as the United States and United Kingdom:
If the proposal by FSA is passed for 2026, Japan will run in a simple, investor-fired structure. The country’s crypto scenario is on the cast of its biggest change till date.
Meanwhile, it is important for investors to maintain an exact log (including activity on both Crypto Wallet and Crypto Exchange), to file on time and keep an eye on N Regulatory announcements. Once passed, the new tax regime may have a game changer for crypto investors in the land of rising sun.