Japan's cryptocurrency asset tax reform timetable exposed: a separate assessment system may be implemented starting in 2028

【BlockBeats】Japan’s political circles have revealed the latest progress in the reform of the cryptocurrency tax system. According to sources, the government is pushing to adjust virtual currency trading profits from the current “miscellaneous income” system to an independent self-assessment system, expected to be implemented from January 2028.

Why is it delayed until 2028? The official explanation is that they want to first confirm the actual market operation after the revision of the “Financial Instruments and Exchange Act,” and then implement the new tax system. It sounds reasonable, but investors are getting a bit tired of waiting.

What is the current situation? Trading gains from crypto assets are classified as “miscellaneous income,” mixed with wages, bonuses, and other income, with a top tax rate of up to 55%. In contrast, stock trading only requires a 20% separate taxation, making the difference quite significant.

Industry insiders and investor groups have been calling for years, hoping that crypto assets can enjoy the same 20% tax rate as stocks. This would both reduce the burden on investors and attract more capital into the market. However, the government says that related investor protection measures need further improvement, so we have to wait for now.

Overall, the Japanese government is indeed moving toward reform, just at a slow pace. When it finally implements in 2028, it might be another story altogether.