Japan Proposes Lower Tax Rates for Cryptocurrencies

Japan’s Financial Services Agency (FSA) has proposed a significant update to its tax code for 2025, aiming to adjust the tax treatment of cryptocurrency assets.

The FSA’s plan, outlined on August 30, suggests that cryptocurrencies should be classified similarly to traditional financial assets to make them more attractive for public investment.

Currently, crypto earnings in Japan are taxed as miscellaneous income, ranging from 15% to 55%, with the top rate applying to high-income earners. In contrast, profits from stock trading are taxed at a maximum rate of 20%. For corporate holders of cryptocurrencies, a flat 30% tax is levied on holdings at the end of the fiscal year, regardless of whether the assets have been sold.

The proposed reforms, which would require approval from both houses of Japan’s legislature, aim to lower the tax rate on crypto assets and align it more closely with stock trading rates. This comes in response to ongoing calls from crypto advocates, including the Japan Blockchain Association, for a more favorable tax regime to support the growth of Japan’s crypto sector.

The final decision on these reforms will be made after review by a tax system research committee and legislative approval.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.