Financial Services Agency Proposes Tax Reforms for Cryptocurrency ETFs—Revising Taxation on Crypto Asset Transactions and Unveiling New Opportunities

On the 26th, the Financial Services Agency published documents concerning the fiscal 2026 tax reform. Based on the outline of the tax reform, the agency also discussed revisions to the taxation of crypto asset (cryptocurrency) transactions. Initially, the agency highlighted that, amidst increasing cryptocurrency investments, the income derived from these transactions is subject to comprehensive taxation, unlike stocks. Furthermore, considering trends in other countries, Japan also needs to explore the possibility of forming cryptocurrency ETFs, including considerations related to tax regulations. According to official documents, currently, listed stocks and other assets are subject to capital gains tax...