Japan Backs 20% Flat Tax Proposal for Crypto Gains
Japan's government is supporting a plan to apply a flat 20% tax rate to cryptocurrency profits, bringing digital-asset gains into the same tax category as investment trusts and listed stocks. That would mark a shift from the current treatment that often classifies crypto as miscellaneous income, a setup that can produce higher and more complex tax bills for certain taxpayers; proponents say the change would simplify reporting and improve predictability for investors.
The backing increases the proposal's chances but it still requires legislation and parliamentary approval, so timing remains uncertain. Market participants and exchanges are watching closely — a uniform rate could encourage greater institutional participation and streamline compliance, while critics caution about potential impacts on tax progressivity. If enacted, the measure could be a notable step toward clearer regulation and wider crypto adoption in Japan.