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.
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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.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
