Japan's 2026 Bill Changes Cryptocurrency Taxation.

The cryptocurrency sector in Japan is preparing for a significant transformation 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 give more importance to cryptocurrencies as a long-term savings tool.

The content of the draft discusses various taxation models for crypto assets. According to the draft, the 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.

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

Another important detail in the draft concerns staking and crypto lending income. It is expected that such passive income will remain subject to general income tax, as in the current system. Additionally, it is stated that gains from NFT transactions may not be included in the classification of financial products. According to Japanese officials, these issues have not yet been clarified, and the details will be defined by additional regulations to be issued in the future.

If the reform is accepted in its current form, it could make Japan's cryptocurrency market's tax structure more predictable and investor-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.