Japan to Lower Crypto Tax Rate to 20% for Specific Digital Assets

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Japan to Lower Crypto Tax Rate to 20% for Specific Digital Assets in 2026, a move that could boost the digital asset market. Currently, crypto gains are taxed up to 55%, limiting trading activity. The new rate will match the 20% tax on stocks and investment trusts, but only for assets handled by licensed firms. Major coins like Bitcoin and Ethereum may qualify, though requirements remain unclear. Traders are watching how this affects altcoins to watch in the coming years.

According to MarsBit, Japan has announced a 2026 tax reform plan that will lower the cryptocurrency tax rate to a flat 20%. Currently, crypto gains in Japan are taxed at a maximum of 55%, which has suppressed domestic trading activity. The new policy will align crypto profits with a 20% unified tax rate for stocks and investment trusts, but it will only apply to specific digital assets handled by firms registered with the Financial Instruments Business Operator. Major cryptocurrencies like Bitcoin and Ethereum may qualify, though specific business requirements remain unclear.

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