Citing Chainthink, on November 16, Japan's Financial Services Agency (FSA) plans to reclassify 105 cryptocurrencies, including Bitcoin and Ethereum, as financial products under the Financial Instruments and Exchange Act. Currently, residents must report crypto gains as miscellaneous income, subject to a maximum 55% tax rate. Under the proposal, gains from these 105 tokens will be taxed as capital gains at a flat 20%, aligning with stock trading rates. The proposal is expected to be included in the budget bill early in 2026.
Japan Regulator Proposes Reclassifying 105 Cryptocurrencies as Financial Products, Tax Rate to Drop to 20%
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