The Japanese government announced a reform plan for the crypto asset tax system in 2026, with a significant policy adjustment—main crypto assets including Ethereum, Binance Coin, and others will see their profit tax rates sharply reduced from 55% to 20%. This is not just a numerical adjustment of the tax rate but also a redefinition of Japan's stance on the investment attributes of crypto assets as a major global economy.

From the market reaction, this news has sparked considerable discussion on social media. The original 55% tax rate was once a barrier deterring many institutional and individual investors from entering. The new policy change means that after-tax returns for assets like Ethereum will significantly increase, coupled with the allowance of a 3-year loss carryforward mechanism. These assets are evolving from mere speculative targets into relatively regulated financial products.

From a macro perspective, Japan's move carries important signaling significance. As the world's third-largest economy, Japan's policy tilt often influences international capital allocation decisions. From Tokyo to other major financial centers, such policy easing typically triggers a reallocation of funds. Historical experience shows that whenever major economies improve their tax policies, it tends to drive liquidity shifts and market sentiment warming for related assets.

Short-term market fluctuations are objectively possible. The sudden relaxation of high tax policies will attract previously cautious capital to enter quickly, often causing more intense price volatility during this process. However, from a longer-term view, policy easing generally indicates an improvement in liquidity conditions. Especially as such reforms are gradually adopted by major global economies, the overall market structure may face significant adjustments.

Why should we pay attention to this change? First, Ethereum, as the leading smart contract platform, gaining recognition for its investment attributes has a demonstrative effect on the entire crypto market; second, Japan has traditionally maintained relatively open regulation of risk assets, and such policy shifts often trigger policy linkages in other regions; finally, when investment tax burdens are significantly reduced, the demand for allocation across RWA (Real-World Asset Tokenization) and various alternative assets will correspondingly increase.

Currently, Ethereum's price is in a relatively bottoming range, and market sentiment shows signs of recovery influenced by the policy news. This period often presents an opportunity for institutional funds to gradually deploy. If such tax reform policies are implemented in more regions, the liquidity expectations of the global crypto market will be re-priced, and market participants' long-term valuation of related assets will also adjust accordingly.

This Japanese tax reform plan essentially reflects a shift in the attitude of major global economies toward crypto assets—from previous rejection or neutrality to a gradually more open stance. In the coming months, this policy signal could serve as an important reference for guiding capital flows.