Japan's proposed FY2026 tax reform is making moves on crypto assets—and it's worth paying attention to. The blueprint classifies crypto as financial products earmarked for wealth building, which is a shift in how authorities view digital assets.

Here's what stands out: they're exploring differentiated tax treatment. Spot trading gains, derivatives profits, and crypto ETF returns would each face separate taxation frameworks. That's a meaningful distinction since the tax implications vary significantly across these categories.

Another notable detail—three years of loss carryforward is on the table. If you've taken losses on crypto positions, you could potentially offset gains across multiple years, which softens the blow of market downturns.

Now, what about staking rewards and lending income? Those appear to be staying under the general income category for now, which leaves some ambiguity about their exact treatment. NFTs similarly seem positioned outside the new financial product classification.

This proposal signals Japan's intent to build a more nuanced regulatory framework for crypto rather than applying a one-size-fits-all approach. Whether this gets finalized as-is remains to be seen, but it reflects a growing recognition that crypto markets warrant thoughtful tax policy design.