Japan Government Backs Proposal to Cut Crypto Tax Rate to 20%

Japan's government has endorsed a proposal to replace the current progressive crypto profit tax—which can reach as high as 55%—with a flat 20% rate, aligning it with taxation on stocks and other financial instruments, Nikkei Asia reports. The Financial Services Agency plans to submit the tax reform proposal to parliament in early 2026. The Japan Blockchain Association has advocated for the change for nearly three years, citing the existing high tax burden as a barrier to domestic crypto market growth. The new tax framework is set to be implemented alongside stricter investor protection measures, including a ban on trading based on non-public information and enhanced disclosure requirements.