Japan’s government is backing a plan to tax cryptocurrency profits at a flat 20% rate, a major change from the current system that can push some traders into much higher brackets. Reports have disclosed the move aims to treat crypto gains more like stock trading, simplifying what many investors have called a confusing tax regime.
What The Change Means
Under the proposal, gains from crypto trades would be taxed separately from salaries and other miscellaneous income and instead be subject to the same 20% capital gains-style rate that applies to many investment products. Right now, crypto earnings in Japan are lumped in with other income and can be taxed at rates reaching as high as 55%.
Reports have also said regulators want to reclassify many cryptocurrencies as financial products. That would bring new rules, such as tighter disclosure and the potential application of insider trading laws to crypto markets. The Financial Services Agency is said to be leading the drafting of the proposal.
Industry Reaction And Regional Impact
Exchanges and brokers in Japan are studying what a uniform 20% rate would mean for fees, trading volumes, and client onboarding. Some market participants welcome the predictability; others worry about additional compliance burdens if exchanges must follow securities-style rules. Firms in other Asian hubs are watching closely because lower retail tax costs in Japan could shift where regional investors choose to trade.
Analysts note two effects are likely: clearer tax bills for individual traders and a possible uptick in institutional interest if banks and insurers can sell crypto through regulated channels. Still, some retail traders who benefited from earlier tax treatments may see little immediate gain.
Implementation Timeline And Next Steps
Based on reports, the measure is expected to be included in the fiscal 2026 tax reform package that ruling parties will compile soon, with legislation to be introduced in the next parliamentary session. That timetable means practical implementation could come in 2026 or take effect in 2027 depending on parliamentary approval and technical details.
Several important details remain unclear. Which assets will qualify, how past losses will be handled, and whether a list of approved tokens will be set are all open questions. Some coverage mentions a specific list of approved cryptocurrencies will be treated like equities, but final wording has not been released.
Featured image from Frank Lukasseck/Getty Images, chart from TradingView
Crypto users can trim tax bills by deducting eligible fees, tools, and operating costs, strategically harvesting losses, and using long-term holds and donations to reduce taxable gains, subject to jurisdiction rules and documentation requirements. Cryptocurrency users face tax obligations on…
Spain’s Sumar parliamentary group has submitted a proposal that would change how gains from cryptocurrencies are taxed, potentially pushing the top personal rate to 47%.
According to reports, the draft would move profits from crypto out of the current “savings” tax bracket — where gains are taxed up to around 30% — into the general income tax base, which carries higher top rates.
Sumar’s Proposal And Key Changes
Based on reports, the changes do more than tweak rates. They would treat gains from nonfinancial crypto assets as ordinary income, apply a 30% corporate tax rate to business crypto gains, and label all digital assets as attachable or seizable under certain conditions.
The plan also asks Spain’s securities regulator to design a “risk traffic light” that platforms must display to users, showing a simple risk indicator for various tokens.
Spain’s Sumar parliamentary group has proposed a legislative reform aimed at significantly increasing taxes on Bitcoin and other crypto assets. The proposal would shift taxation of crypto gains from the current “savings tax base” (capped at 30%) to the “general tax base,” where…
Lawmakers filed the amendment recently. It targets at least three laws: the General Tax Law, the Income Tax Law and the Inheritance and Gift Tax Law.
Reports have made clear the package is broad and could change again as it moves through the legislature.
Industry Reaction And Legal Questions
The push has drawn sharp criticism from parts of the crypto community and some legal experts. Critics warn that treating crypto like regular income and declaring all tokens seizable could push investors and firms to move holdings abroad.
Others say seizing assets becomes tricky when tokens are self-custodied or held on platforms outside Spanish control.
Some lawyers argue the proposed seizure rules may be hard to apply in practice. They point to stablecoins and tokens that circulate across borders and systems, noting enforcement could be limited unless platforms or intermediaries cooperate.
El Grupo Parlamentario Sumar ha presentado tres enmiendas en el proyecto que transpone la Directiva de la UE sobre criptoactivos que van claramente contra Bitcoin, Ethereum y otras criptomonedas:
1⃣ Quieren que las ganancias por criptoactivos no considerados instrumentos…
At the same time, supporters inside the Sumar group say stronger rules are needed to close tax loopholes and provide clearer rules for a market they view as risky for retail savers.
Market And Policy Risks
If enacted as written, the reform would raise the tax bill for many individual holders and traders. Retail investors who now pay up to 30% on gains could face rates near 47% on large profits.
Companies that keep crypto on their balance sheets would see a flat 30% corporate tax on gains. Analysts warn that these shifts could reduce trading activity and deter new crypto firms from setting up in Spain.
Featured image from Unsplash, chart from TradingView
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