Japan’s 2026 Tax Reform Plan Outlines New Structure for Cryptocurrency Assets: Report

The ruling coalition in Japan has unveiled its 2026 tax reform plan, which suggests a potential change in the taxation of cryptocurrencies within the nation’s tax framework, as reported by CoinPost.

仮想通貨の税制改正大綱、押さえておくべき重要ポイントを専門家が徹底解説｜Gtax寄稿https://t.co/Pd9hoQmm1B

— CoinPost（仮想通貨メディア） (@coin_post) December 26, 2025

Released on December 19 by the Liberal Democratic Party and the Japan Innovation Party, the reform initiative signifies a shift from perceiving crypto assets solely as speculative tools to recognizing them as financial products that can aid in long-term wealth accumulation.

As noted by CoinPost, the plan considers categorizing crypto assets similarly to conventional financial products like stocks and investment funds.

In line with this strategy, lawmakers are also contemplating the establishment of distinct taxation for specific types of crypto-related income, thereby aligning the sector more closely with Japan’s existing capital markets framework.

Separate Taxation Under Consideration — Not for All Crypto Income

A primary emphasis of the reform is the potential for separate taxation on profits derived from spot crypto trading, derivatives transactions, and crypto-related exchange-traded funds (ETFs).

If enacted, this would represent a significant shift from Japan’s current approach, where the majority of crypto income is classified as miscellaneous income and subjected to progressive tax rates.

The proposal does not extend separate taxation universally. CoinPost highlights that staking and lending rewards, which yield income through holding crypto rather than through price increases, are not specifically addressed in the plan.

These income types may still be governed by general taxation regulations, contingent on how future legislation delineates income categories.

Loss Carryforward and Limits to Offsetting

Another significant aspect of the proposal is the allowance for loss carryforwards for up to three years on qualifying crypto transactions. This would align crypto taxation more closely with the treatment of stocks and foreign exchange trading in Japan, where investors can offset future gains with prior losses.

The reform does not propose broad cross-asset loss offsetting. Even if crypto gains are subjected to separate taxation, losses from crypto trading are unlikely to be offset against profits from stocks or other asset classes. Income categories are anticipated to remain distinctly separated.

NFTs and Scope of Eligible Assets Remain Unclear

The plan does not specifically mention non-fungible tokens (NFTs), suggesting that income related to NFTs may continue to be taxed under the general system.

The reform refers to transactions involving “specified crypto assets,” indicating that only assets managed by registered operators under Japan’s financial regulatory framework may be eligible for the new tax treatment.

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