Key Takeaways:

• On March 31, the Diet passed a stopgap budget that keeps the proposal to reduce crypto tax from 55% to 20% flat tax to stop the Web3 exodus to Dubai.
• While the proposal has hailed critics say the slow 2028 timeline hinders bitcoin ETFs.
• Japan will enforce the FIEA update on Jan. 1, 2028, testing the industry during a 2-year transition.

Criticism of the ‘Slow Pace’

Japan’s cryptocurrency sector is navigating a complex transition following landmark tax reforms finalized March 31, as industry leaders temper their celebration with frustration over a multiyear implementation delay. While the legislative package officially moves digital assets toward a 20% flat tax and eliminates the “startup killer” tax on…