Japan’s cryptocurrency tax reform may not be enacted until January 2028

Japan’s cryptocurrency tax reform, which aims for a separate taxation system, is projected for implementation by January 2028 due to a focus on investor safety and the observation of the Financial Instruments and Exchange Act.

Currently, cryptocurrency gains are taxed as miscellaneous income at a maximum rate of 55%. There is a strong push from the industry for a tax system with a 20% rate, aligning it with stock investments to encourage market growth.

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