Financial Services Agency Formally Requests Tax System Revision for Crypto Assets, Including Consideration for Separate Taxation

On the 29th, the Financial Services Agency announced the main items of its request for the fiscal year 2026 tax reform, formally requesting a revision of the taxation system for crypto asset (cryptocurrency) transactions. The request also includes tax reforms that would make it easier to establish Exchange Traded Funds (ETFs) for Bitcoin and other cryptocurrencies.

The Agency stated that 'in conjunction with necessary legal preparations for crypto asset transactions, a review of the taxation related to crypto asset transactions, including the introduction of separate taxation, is requested.' However, no specific details have been mentioned.

Under the current system, profits from the sale of crypto assets are classified as 'miscellaneous income' and combined with salary income, taxed at rates up to 55%...