Japan’s FSA has proposed reclassifying crypto assets as financial products under the Financial Instruments and Exchange Act (FIEA), moving away from the current “miscellaneous income” tax treatment that can reach up to 55%.
The new proposal introduces:
Alignment of crypto taxation with traditional financial products.
Loss carry-forward allowance for up to three years.
Simplified filing and potentially lower effective tax rates.
This overhaul could make Japan one of the most investor-friendly crypto jurisdictions globally. It follows Japan’s long regulatory journey from the Mt. Gox collapse to pioneering Bitcoin recognition and dedicated stablecoin rules.
Metaplanet’s acquisition of 15,555 BTC, making it Japan’s fifth-largest corporate holder, underscores the country’s evolving digital asset landscape. The new tax regime, expected by 2026, aims to promote investment while ensuring compliance.
[WEEKLYBLOCKCHAIN] Japan's Crypto Tax Overhaul: What Investors Should Know in 2025
The Japan Financial Services Agency (FSA) has proposed a new tax structure that classifies cryptocurrencies as financial products similar to stocks and bonds. This includes cryptocurrencies within the scope of the Financial Instruments and Exchange Act (FIEA), differentiating it from the current 'miscellaneous income' tax system.
Under the current system, profits from cryptocurrency trading are subject to a progressive tax rate of up to 55% (including local taxes). Once the new system is implemented, the tax rate will be applied similarly to financial products, and loss carry-forward deductions will be possible, which is favorable for volatile cryptocurrency investments.
Metaplanet becoming the fifth corporate holder of 15,555 BTC is also noteworthy. Japan has led regulatory innovation since the 2014 Mt. Gox hacking incident by being the first in the world to recognize Bitcoin as a means of payment and enacting dedicated stablecoin regulations.
The new system is scheduled to be implemented in 2026, aiming to build a tax regime that is friendly to investors compared to the United States and the United Kingdom. Investors will be required to maintain transaction records and comply with reporting procedures.
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