Japan's 2026 Bill Changes Cryptocurrency Taxation

The cryptocurrency sector in Japan is preparing to enter a significant transformation process with the draft tax reform for the fiscal year 2026. This new draft stands out for proposing the classification of crypto assets as financial products aimed at wealth creation. With these innovations, investors may start to place greater importance on cryptocurrencies as a long-term savings tool.

Within the content of the draft, various taxation models for crypto assets are under discussion. According to the draft, gains obtained from spot transactions, derivative products, and crypto exchange-traded funds (ETFs) will be taxed separately. This situation could strengthen the position of investors and create a more predictable market environment.

Moreover, investors will also encounter advantages such as the ability to carry forward their losses for up to three years. This reform presentation is seen as part of Japan's effort to align its cryptocurrency market more closely with traditional financial markets.

Another important detail in the draft concerns staking and crypto lending income. It is predicted that such passive income will remain under the general income tax regime, as in the current system. Additionally, it is noted that gains from NFT transactions may not be included in the classification of financial products. According to Japanese authorities, these issues are still unclear, and details will be determined in later additional regulations.

If the reform is accepted in its current form, it could make Japan's tax structure for the crypto market more predictable and investment-friendly. Experts believe that this draft will particularly increase the interest of institutional investors and long-term individual investors in Japan's crypto market. Therefore, it is important for investors to closely monitor these developments.