Japan FSA proposes crypto tax overhaul, eyes 20% flat rate

Japan’s Financial Services Agency (FSA) plans to include cryptocurrency tax reform in its 2026 tax revision proposal, BeInCrypto reported, citing Japan's local news outlet Nikkei. The proposal is expected to combine tax changes with stricter regulations and could pave the way for crypto-linked exchange-traded funds (ETFs). The FSA intends to recommend moving crypto from comprehensive taxation to the same category as equities, which are taxed separately at a 20% flat rate. Currently, crypto gains are treated as “miscellaneous income” and subject to progressive rates that can exceed 50% when local taxes are included. The agency also aims to reclassify crypto as a financial product, enabling investor protections and disclosure requirements under the Financial Instruments and Exchange Act.