Japan's financial regulator has proposed a comprehensive revision of the tax code by fiscal 2025, including measures to potentially reduce the tax rate for crypto assets.
The Financial Services Agency (FSA) announced on August 30 it is pushing for crypto assets to be recognized and treated as traditional financial assets that can be invested in by the public.
The FSA stated that it is necessary to review the tax treatment and consider whether they should be treated as a financial asset.
Currently, crypto assets in Japan are taxed as miscellaneous income at rates ranging from 15% to 55%. However, the tax rate for profits from stock trading is significantly lower at 20%.
In addition, companies holding cryptocurrencies are subject to a flat tax rate of 30% on their holdings, regardless of whether they have made a profit on sales.