"Japan's 2026 Bill Changes Cryptocurrency Taxation"

Japan's cryptocurrency sector is preparing for a significant transformation process with the draft of the 2026 fiscal year tax reform. This new draft stands out for proposing the classification of crypto assets as financial products aimed at wealth creation. Investors may start to place more importance on cryptocurrencies as long-term savings instruments with these innovations.

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

Furthermore, investors will also encounter advantages such as being able to carry forward their losses for up to three years. This reform presentation is seen as part of Japan's efforts 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 anticipated that such passive income will remain subject to general income tax, as in the current system. Additionally, it is noted that gains from NFT transactions might not be included in the financial product classification. According to Japanese authorities, these matters are still unclear, and details will be determined in future regulations to be issued.

If the reform is accepted in its current form, it could lead to a more predictable and investor-friendly tax structure in Japan's crypto market. 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 follow these developments.