Japan’s Crypto Winter is Thawing: 20% Flat Tax and ETFs on the Horizon for Investors
Crypto investors in Japan may soon see a dramatic reduction in their tax burden. To boost the industry’s competitiveness, regulators are planning to replace the current progressive tax rate—which can soar as high as 55%—with a flat 20% rate on crypto gains.
The proposed overhaul, reported by Nikkei, would treat cryptocurrency similarly to listed stocks, a long-sought victory for the industry.
The changes include a key benefit: the ability to carry losses forward for three years. Additionally, the path will be cleared for Japanese firms to finally offer crypto ETFs, providing investors with new, regulated avenues for exposure. This shift signals a major policy pivot from viewing crypto as a simple “means of payment” to a legitimate “financial product.”
