Japan Uses a 20% Tax and FIEA Status to Treat Crypto More Like Stocks

• The Reform: Japan plans to replace its punitive 55% ‘miscellaneous income‘ tax with a flat 20% rate in 2026.
• The Shift: 105 specific cryptocurrencies will be legally reclassified as Financial Products, granting them the same status as stocks.
• The Guardrail: Exchanges must now hold mandatory cash reserves (up to ¥40B) to guarantee user refunds in case of hacks.

The Japanese government is advancing a regulatory overhaul that will effectively integrate cryptocurrency into its national securities framework. 

The ruling coalition is finalizing a proposal for the 2026 tax reform that would slash the maximum tax rate on digital asset gains from 55% to a flat 20%, aligning crypto taxation with equities and traditional investments.

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A Shift Toward Uniform Taxation

For years, Japanese i…

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