Japan to Introduce Uniform 20% Tax on Crypto, Offering Relief to Bitcoin Investors

Japan is preparing a sweeping overhaul of its cryptocurrency tax rules, aiming to introduce a flat 20% tax on digital asset gains—bringing them in line with equities and investment trusts, according to Nikkei. The reform, endorsed by the government and ruling coalition, would be the country’s most consequential policy update for the crypto market in years, reflecting a broader shift toward treating digital assets as a mature investment category.

The plan places crypto earnings within Japan’s separate-taxation framework, where specific income types are taxed independently of salary or business income. Under this system, the unified 20% rate would be divided between the national government and local authorities at 15% and 5%, respectively. The measure is expected to be incorporated into the 2026 tax reform package due for completion at the end of December.

For retail investors, the change would significantly reduce the current tax burden. Crypto traders today face progressive tax rates that can reach up to 55%—a long-standing deterrent to domestic participation in the market.

The policy shift comes as regulated trading volumes continue to climb. Data from the Japan Virtual and Crypto Assets Exchange Association shows spot volumes on domestic exchanges exceeding $9.6 billion in September, underscoring renewed momentum in Japan’s tightly regulated crypto sector.