Japan plans 2026 overhaul of crypto taxation with 20% flat rate and loss carry-forward

Japan plans to overhaul how cryptocurrency gains are taxed in 2026, shifting eligible holdings from progressive income tax of up to 55% to a flat 20% rate. The lower rate will only apply to specified crypto assets handled under the Financial Instruments and Exchange Act, alongside the introduction of a three-year loss carry-forward for crypto investments. These steps are part of a wider move to bring digital assets under a framework more closely aligned with traditional securities while tightening investor protections.