Japan is going to cut the encryption tax from 55% to 20%? The JBA has finally made some noise after three years.

【Block Rhythm】Japan's recent actions are quite interesting. According to news from Nikkei Asia, the Japanese government has finally relented and is preparing to cut the profit tax on Crypto Assets from the current maximum progressive rate of 55% to a flat standard of 20%—the same treatment as stock trading.

The Japan Blockchain Association (JBA) has actually been shouting about this for almost three years. They have been saying that the current tax rate is too outrageous, which has paralyzed the domestic market. Now, the Financial Services Agency (FSA) has finally put this proposal on the agenda, planning to submit it to Congress for a vote in early 2026.

However, don’t get too excited; the new tax system will be accompanied by a bunch of stricter rules: insider trading will be directly prohibited, information disclosure requirements will be more detailed, and basically, while lowering taxes, they will also establish a framework for investor protection. In other words, Japan wants the market to be both active and regulated.