Japan's Financial Services Agency plans to reclassify 105 cryptocurrencies, including Bitcoin, as "financial products," potentially reducing the tax r...
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TL;DR
Japan's FSA plans to reclassify 105 cryptocurrencies like Bitcoin as financial products, changing their tax treatment from miscellaneous income (up to 55%) to capital gains (flat 20%). This move aims to align crypto taxes with stock trading and is expected in the 2026 budget.
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Halving TokensLayer 1Japan FSAcryptocurrency reclassificationtax reductionBitcoinFinancial Instruments Act
According to Dlnews, Japan's Financial Services Agency (FSA) plans to reclassify 105 crypto assets, including Bitcoin and Ethereum, as financial products and bring them under the purview of the Financial Instruments and Exchange Act. Currently, Japanese residents are required to declare cryptocurrency gains as miscellaneous income, with a maximum tax rate of 55%. After the reclassification, trading gains on these 105 tokens will be taxed as capital gains, with the tax rate reduced to a flat 20%, on par with stock trading. The proposal is reportedly expected to be included in the budget in early 2026.