Japan’s government has formally endorsed a significant overhaul of its cryptocurrency taxation framework, moving to establish a uniform 20% flat rate on profits from crypto asset investments. This pivotal policy shift replaces the nation’s previous progressive tax structure, which subjected crypto gains to marginal rates that could escalate to 55%. The new flat rate aligns the tax treatment of cryptocurrency profits directly with that of traditional stock investments, marking a decisive step toward regulatory parity between digital and conventional asset classes. Proponents argue this reform will enhance Japan’s competitiveness in the global digital asset sector by providing clearer, more favorable conditions for investors and enterprises. The move is widely interpreted as part of a broader, strategic effort to foster a mature and stable environment for cryptocurrency innovation and adoption within the country’s regulated financial ecosystem.
