Japan's Deputy Prime Minister Taro Aso has proposed a uniform tax rate for cryptocurrency transactions.
Currently, profits or capital gains from crypto transactions are considered as miscellaneous income, and taxed at a progressive rate in Japan.
Japan has seven income tax slabs, with the tax rates ranging from 5 percent to 45 percent based on cryptocurrency profits.
In addition, a 10 percent "inhabitant tax" also is levied by local bodies.
If Aso's s proposal is implemented, crypto profits will be taxed at a uniform rate, which is applicable to stock traders.
"Capital gains from sales of certain securities (including shares/equity interest in corporations, warrant bonds, etc.) are taxed separately from other sources of income at a flat rate of 20.315 percent (i.e. 15.315 percent national tax and 5 percent local inhabitant's tax), according to the Policy Research Institute of the Japanese Ministry of Finance.
Japan's crypto currency trading community had recently submitted a mass petition on Change.org calling for the National Tax Agency (NTA) to change the taxation on crypto profits.
Japan is one of the most cryptocurrency-friendly economies of the world.
More than 3.5 million people in Japan are trading with cryptocurrencies, the country's financial watchdog estimates.
Japanese Yen has gained a competitive edge against other national currencies in adopting bitcoin and allowing cryptocurrency exchanges to flourish, the Japanese Financial Services Agency (FSA) said in a report in April.
Following the hacking of crypto exchange Coincheck, Japan's financial regulator made a widespread crackdown on the country's cryptocurrency exchanges to step up consumer protection.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.