Japan Unveils 2026 Tax Reform Blueprint for Crypto Assets
Japan's ruling coalition released a tax reform blueprint for 2026 focusing on crypto assets, as reported by CoinPost and published on December 19 by the Liberal Democratic Party and the Japan Innovation Party.
The reform aims to reposition cryptocurrency from being viewed purely as speculative assets to financial products intended for long-term wealth building. This shift potentially classifies crypto assets alongside traditional financial instruments such as stocks and investment funds.
The blueprint contemplates introducing separate taxation for certain types of crypto income, in line with Japan's capital markets framework; however, this treatment would not apply to all crypto income.
Income types under consideration for separate taxation include gains from spot crypto trading, derivatives, and crypto-related ETFs. If adopted, this would mark a significant departure from the current system where most crypto income is taxed as miscellaneous income at progressive rates.
The plan does not explicitly address staking and lending rewards, which may remain subject to general taxation depending on how income categories are ultimately defined.
The reform would also allow loss carryforwards for up to three years on qualifying crypto transactions but would not enable broad cross-asset loss offsetting.
Regarding NFTs and the overall scope, the blueprint remains unclear. NFT-related income is likely to stay under the general taxation system. Only "specified crypto assets" handled by registered operators may qualify for the new tax treatment.
