Overview
- Government and ruling-coalition support has been reported, with the Financial Services Agency preparing to submit a bill in the regular Diet session in early 2026.
- The proposal moves crypto profits out of miscellaneous income into a separate-taxation framework at a uniform 20% rate.
- Japan currently taxes crypto gains at progressive rates that can reach about 55%, a system critics say has pushed activity offshore.
- Regulators are drafting securities-style rules that would cover roughly 105 domestically listed tokens, including Bitcoin and Ethereum, with insider-trading and disclosure requirements.
- Major asset managers such as Nomura, Daiwa, Mitsubishi UFJ Asset Management, and Amova are evaluating product plans, though the effective date depends on Diet approval and could slip to 2027.