Japan may plan to implement a separate tax system for crypto assets starting in 2028.

Sources within the Japanese political sphere have revealed a proposal to transition Japan to a separate, self-assessed tax system for crypto assets (virtual currencies), with implementation planned for January 2028. While the market anticipates the passage of the revised Financial Instruments and Exchange Act next year, potentially leading to implementation of the new tax system by 2027, the Japanese government prefers to finalize the tax reform after assessing market conditions under the Financial Instruments and Exchange Act. Currently, profits from crypto asset trading in Japan are classified as "miscellaneous income," combined with wages and other income, with a maximum tax rate of 55%. Investors and industry groups have long advocated for a change to a separate 20% tax system, similar to that for stocks. The government stated that the delay is primarily due to the need to "improve investor protection measures."