Japan Plans Major Crypto Tax Cut — From 55% Down to 20% in 2025

Key takeaways

  • Japan plans to replace progressive crypto tax rates up to 55% with a flat 20% by fiscal year 2026.

  • New rules will align digital assets with equities, adding safeguards against insider trading and unfair practices.

  • Investors will gain three-year loss carry-forward provisions, which ease volatility and improve portfolio risk management.

  • Japan shifts from strict post-hack regulations to a Web3-friendly framework that balances innovation with security.

Japan is poised for a significant change in its cryptocurrency tax policies. Currently, investors must deal with a stringent system that taxes crypto transactions at steep rates — up to 55%. This policy has discouraged participation, driven many traders out of Japan and left crypto…

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