Japan Plans to Regulate Crypto Under Securities Law with a Flat 20% Tax Rate
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 05 2026- Regulatory Framework Shift: Japan's Finance Minister Satsuki Katayama announced at the Tokyo Stock Exchange that 2026 will mark the first year of full-scale digitalization, with plans to integrate cryptocurrencies into traditional financial markets, indicating that digital assets will increasingly be traded through regulated exchanges.
- Tax Policy Reform: The Japanese government has approved a flat 20% tax on crypto profits, replacing the current progressive tax system that could reach up to 55%, aligning digital assets with the tax treatment of stocks and investment funds, which is expected to enhance market participation.
- Access Restrictions: Japanese authorities have begun limiting access to unregistered crypto exchanges by requesting Apple and Google to remove related apps, leading some global exchanges like Bybit to announce plans to gradually exit the Japanese market by 2026, reflecting the impact of regulatory pressure on market participation.
- Support for Stablecoin Projects: Despite the retreat of some global exchanges, Japan is taking steps to support bank-led stablecoin initiatives and exploring frameworks that allow regulated financial institutions to play a larger role in digital asset markets, demonstrating a long-term commitment to the digital asset sector.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
