365Crypto
Japan’s Financial Services Agency (FSA) has proposed a major tax code overhaul for 2025, which could reduce taxes on crypto assets. In an August 30 reform request, the FSA suggested treating cryptocurrencies like traditional financial assets, making them more accessible for public investment.
Currently, crypto profits in Japan are taxed as miscellaneous income, with rates ranging from 15% to 55%, depending on the individual’s tax bracket. In contrast, stock trading profits are taxed at a maximum of 20%. Corporations holding crypto face a flat 30% tax on their holdings, even without selling.
Crypto advocates, including the Japan Blockchain Association, have been pushing for lower crypto taxes for years. They have proposed a flat 20% tax rate and a three-year loss carryover deduction to encourage growth in the sector. Despite these efforts, no changes have been implemented yet.
For the reform to take effect, it must be approved by both houses of Japan’s legislature: the House of Representatives and the House of Councilors.
