🌏 Asia-Pacific
Crypto & taxes in Japan
- Crypto capital gains (individuals)
- "Miscellaneous" income, effective rate up to ~55%
- Upcoming reform
- Toward flat 20% on "specified" assets (in transition)
- Regulator
- FSA — Payment Services Act / FIEA
- Staking/DeFi/NFT
- Remain progressive "miscellaneous" income
Crypto regulation
Japan supervises crypto through the Financial Services Agency (FSA), historically under the Payment Services Act for registered exchanges. A 2026 reform reclassifies around 105 crypto-assets (including BTC and ETH) as financial products under the Financial Instruments and Exchange Act; the bill passed the Lower House on 11 June 2026 and awaits final enactment.
Taxation
For residents, crypto gains are currently taxed as "miscellaneous income" at progressive rates that, combining national and local tax, can reach roughly 55%. The 2026 tax reform aims to introduce a separate flat 20% rate (with loss carry-forward) on "specified" assets traded on registered exchanges, but full application for individuals is expected later (around 2027-2028); staking, DeFi and NFTs remain under the progressive regime for now.
Useful information
Residents must currently budget for a potentially very high tax burden on crypto gains (up to ~55%), so it is worth tracking the reform toward the flat 20% closely. Using FSA-registered exchanges and keeping precise transaction records is essential.