Japan’s FSA proposes a 20% flat tax on crypto gains, replacing the current system of up to 55%. Loss carry-forward deductions for crypto trades could be introduced, mirroring stock rules. Japan prepares to approve its first yen-based stablecoin, JPYC, this fall. Japan is preparing for a 2026 tax reform that could change its approach to digital assets. The Financial Services Agency (FSA) on Monday disclosed its reform outline, proposing revisions to cryptocurrency taxation and fresh regulatory groundwork for stablecoins. BOOM! Breaking: Japan’s Financial Services Agency (FSA) will reclassify cryptocurrencies as financial products by 2026 — introducing a flat 20% tax rate, aligning them with stocks and bonds. With Ripple’s strong presence in Japan, this is a massive win for #XRP … pic.twitter.com/G3kZAXy3Ha — XRP Governor (@xrpgovernor) August 23, 2025 Push for Fairer Crypto Taxation Currently, individual cryptocurrency gains in Japan are classified as “miscellaneous income” and subject to progressive taxation of up to 55% when combined with salary and other earnings. The system has long been criticized by industry participants for discou… The post Japan Reveals 2026 Tax Reform, Including Crypto Measures appeared first on Coin Edition .