Is Japan going to loosen regulations on Crypto Assets?

The government is serious this time and is preparing to cut the crypto assets capital gains tax from a maximum progressive rate of 55% directly to a flat rate of 20%—that's right, the same treatment as stock trading. The Financial Services Agency has already included this matter in the proposal list, with the goal of sending it to Congress for a vote by early 2026.

It's not simple behind this. The Japan Blockchain Association has spent three whole years trying to prove one thing: the tax burden is too heavy, and the industry simply cannot thrive. It seems that their lobbying has finally paid off.

But don't be too happy too soon. The new policy comes with a "tightening spell" – insider trading? Directly banned. Lack of transparency in information disclosure? Get ready to be fined. While the regulatory hand has loosened the tax rate, it has extended another hand into the compliance field.

Some say this is a positive development, while others worry that the supporting policies may be overly corrective. But in any case, 2026 is destined to be a watershed year for Japan's Crypto Assets circle.