Following reports of potential delays and industry criticism, Japan will implement cryptocurrency tax reforms in 2028, reducing the rate to a flat 20% on gains treated like equity investments. The changes aim to boost predictability, retain domestic capital, and curb outflows to hubs like Singapore and Dubai.
As covered earlier, Japan's crypto tax overhaul faced scrutiny over a possible shift from the anticipated January 2027 start to 2028, with executives warning of slowed web3 progress.
Now formalized with a 2028 rollout, the reform reclassifies crypto gains as capital gains taxed at a uniform 20%, aligning with stocks and forex. This addresses longstanding issues like high progressive taxes up to 55% and lack of loss offsets.
Policymakers' cautious timeline balances investor incentives with revenue stability, potentially spurring local trading and positioning Japan competitively despite the delay.