Japanese financial industry executives say progress on crypto tax reform is "extremely slow" and it may not take effect until 2028 at the earliest.

Japanese financial industry executives have expressed dissatisfaction with the progress of crypto tax reform. Tomoya Asakura, CEO of SBI Global Asset Management, posted on the X platform that the progress of Japan's crypto tax reform is "extremely slow," citing political figures who believe that the reform measures may be delayed for another year, possibly not being implemented until 2028 at the earliest, though this has not yet been finalized. Asakura stated that if the reform continues to be delayed, Japan will lag behind not only the United States in crypto and financial innovation, but also Asia and the Middle East. SBI is one of Japan's major financial groups and a key partner of Ripple, operating the crypto trading platform SBI VC Exchange. The group previously announced plans to launch a yen-denominated stablecoin in the first half of 2026. Currently, Japanese crypto traders are required to declare crypto asset gains as "miscellaneous income," with a maximum tax rate of 55%, and losses cannot be carried forward or deducted. Japan's Financial Services Agency (FSA) has stated its desire to reclassify crypto assets as investment instruments, subjecting them to the same approximately 20% separate taxation system as stocks and foreign exchange transactions. The relevant legal amendments are expected to be submitted to Congress for review in early 2026, but if the implementation cycle is followed as usual, the official take-off date may be further delayed. (DL News)