Will Japan's cryptocurrency tax reform be postponed again? It won't be implemented until 2028.

【Crypto World】Japan’s cryptocurrency tax reform has been further delayed. According to political sources, the tax reform originally scheduled for this year—changing cryptocurrency transactions from “miscellaneous income” to “separate self-assessment taxation”—will now be pushed back to January 2028 for official implementation.

This delay is indeed a bit surprising. The market had generally expected that the parliament would definitely amend the law next year to include cryptocurrencies under the regulatory framework of the Financial Instruments and Exchange Act, and that the new tax system would be launched accordingly. Politicians explained that currently there is no reason to accelerate the process; the government is focusing on investor protection, and they need to see how the implementation of the Financial Instruments and Exchange Act goes before considering launching a new tax system. According to the normal process, this would be January 1, 2028.

This is a bit frustrating for investors. Japan’s current tax rate, although quite harsh—up to 55% (including local taxes)—would be much more palatable if it were changed to a unified 20% separate self-assessment tax. This model, inspired by stock investment tax systems, could significantly reduce the tax burden and also loosen the market. The industry and investors have been calling for this for a long time, but it seems we will have to wait another two or three years.