Japan plans to implement a unified 20% tax rate on crypto assets, and local asset management companies have started to arrange crypto funds.

Japan is preparing to reform its crypto assets tax rules, imposing a unified 20% tax rate on trading profits, allowing digital assets to enjoy the same treatment as mainstream investments such as stocks and investment trusts. According to the Nikkei News, this marks a significant shift in Japan's approach to handling crypto asset profits, which is expected to alleviate long-standing dissatisfaction among investors.

According to the plan, starting from 2026, the income from Crypto Assets trading will no longer be combined with salary or business income, but will be subject to a separate tax system: 15% will be paid to the central government, and 5% will be allocated to local governments. Currently, the profits from Crypto Assets are taxed at a progressive rate, with a maximum of 55%, which can easily distort investor behavior. In contrast, income from stocks and investment trusts is uniformly taxed at 20%. Legislators supporting the reform believe that reducing the tax burden can invigorate market trading and encourage innovation in the blockchain and technology fields, promoting digital assets to become a standard investment category.

According to data from the Japan Virtual and Crypto Assets Exchange Association, there are approximately 8 million active crypto accounts nationwide, with the spot trading volume reaching about 15 trillion yen (approximately 9.6 billion USD) in September. If the proposal is approved, it will become one of the most favorable tax reforms for Crypto Assets among major economies.

Before the new regulations take effect, Japanese asset management companies have begun to layout Crypto Assets funds. Nomura Asset Management has established a cross-departmental task force to formulate strategies; Daiwa Asset Management is collaborating with Global X Japan; Mitsubishi UFJ and Amova Asset Management are also evaluating fund portfolios aimed at retail and institutional investors. However, pricing benchmarks, fund flow management, and custody security remain challenges, while the volatility of Crypto Assets may increase risks.

In addition, the Japanese Financial Services Agency plans to adjust regulatory rules to include digital assets under the insider trading law, covering 105 types of crypto assets listed domestically, including Bitcoin and Ethereum. Overall, this series of tax and regulatory reforms may bring long-term vitality and increased institutional participation to the Japanese crypto market.