Japan delays cryptocurrency tax reform until 2028: from 55% down to 20%, still need to wait a bit longer

【Blockchain Rythm】Latest news shows that the Japanese government plans to implement a standalone self-assessment tax system for cryptocurrencies starting from January 2028. This means that the long-standing issue of high taxes for investors may finally see a turning point.

The current situation is as follows: profits from cryptocurrency trading in Japan are classified as “miscellaneous income” and taxed together with regular income such as salaries, with the highest tax rate reaching 55%. In comparison, stock investors only pay a 20% separate tax, making the difference quite significant. The industry and investors have been calling for reforms, hoping to include cryptocurrencies under the 20% stock tax regime, but there has been no progress.

Why is it delayed until 2028? The official explanation is that they need to first confirm the market operation under the “Financial Instruments and Exchange Act Amendment” and also improve “investor protection measures” before adjusting the tax system. Although the market initially expected this new tax system to be implemented in 2027, the Japanese government is clearly more cautious and does not want to rush the process.

This timeline means that in the short term, Japanese crypto investors will still have to endure the outrageous 55% tax rate. But in the long run, the direction of tax reform has been clarified: once the regulatory framework is fully in place, crypto assets will be taxed similarly to stocks. This is at least a change that those interested in crypto investment in Japan can look forward to.