On December 19th, Japan's Liberal Democratic Party and the Japan Innovation Party released a tax reform outline for fiscal year 2026. The outline proposes classifying virtual currencies as financial products that contribute to public asset accumulation and is considering applying a separate tax system to virtual currency income, similar to that for stocks and investment trusts. According to the outline, spot trading, derivatives trading, and ETFs of virtual currencies will be taxed separately, and losses from virtual currency trading can be carried forward for three years. Furthermore, financial products investing in virtual currencies are also included. Currently, the plan does not explicitly mention tax details for NFTs or reward-based transactions such as staking and lending. The outline also mentions that future earnings from virtual currencies may be subject to taxation when transferred overseas. (CoinPost)