Japan's separate taxation of crypto assets may be implemented in January 2028.

According to a report by CoinDesk JAPAN on December TechFlow, the Japanese government plans to postpone the implementation of its separate taxation policy for crypto assets (virtual currencies) until January 1, 2028. Sources within the political sphere revealed that although the market anticipates the new tax system might be implemented by 2027 following the passage of the revised Financial Instruments and Exchange Act in the Diet next year, the government prefers to implement tax reform after confirming the market conditions under the Financial Instruments and Exchange Act. Currently, profits from crypto asset trading in Japan are classified as "miscellaneous income," calculated together with wages and other income, with a maximum tax rate of 55% (including resident tax). Investors and industry groups have long called for a change to a separate taxation system of 20% for crypto assets, similar to that for stocks. The government stated that the main reason for the postponement is that "investor protection measures still need to be improved."