Japan's 2026 Bill Changes Cryptocurrency Taxation

The cryptocurrency sector in Japan is preparing to enter a significant transformation process with the draft of the 2026 fiscal year tax reform. This new draft draws attention by 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.

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 strengthen the position of investors and create a more predictable market environment.

Additionally, investors will face 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 the cryptocurrency market with more traditional financial markets.

Another important detail in the draft pertains to staking and crypto lending incomes. It is anticipated that such passive incomes will remain under the general income tax, as is the case in the existing system. Furthermore, it is noted that gains from NFT transactions may not be included in the classification of financial products. According to Japanese officials, these issues are still unclear, and details will be determined through additional regulations to be issued in the future.

If the reform is approved in its current form, it could make the tax structure of Japan's 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 the Japanese crypto market. Therefore, it is crucial for investors to closely follow these developments.