Japan's Separate Taxation for Crypto Assets May Be Implemented in January 2028

According to TechFlow, on December 17, as reported by CoinDesk JAPAN, the Japanese government plans to postpone the implementation of the separate taxation policy for crypto assets (virtual currencies) until January 1, 2028. Political insiders revealed that although the market expected the new tax system might be implemented in 2027 after the amendment to the Financial Instruments and Exchange Act is passed in the regular Diet session next year, the government prefers to carry out tax reform after confirming the market conditions under the Financial Instruments and Exchange Act. Currently, profits from crypto asset trading in Japan are classified as "miscellaneous income" and are combined with salary and other income, with a maximum tax rate of up to 55% (including resident tax). Investors and industry groups have long called for this to be changed to a separate taxation system of 20%, the same as stocks. The government stated that the main reason for the postponement is that "investor protection measures still need to be improved."