Japan to Regulate Bitcoin Among 105 Cryptocurrencies Under the Financial Instruments and Exchange Act, Moving to a 20% Capital Gains Tax in the 2026 Budget

Japan’s Financial Services Agency FSA is reportedly poised to reclassify about 105 cryptocurrencies, including Bitcoin and Ethereum, as financial products under the Financial Instruments and Exchange Act. The plan would extend regulatory coverage to the crypto market, compelling exchanges and issuers to satisfy the same disclosure and compliance standards as other financial assets. The proposal is slated for inclusion in the budget for early 2026, per latest industry briefings.

Following reclassification, gains from trading these 105 tokens would be taxed as capital gains at a uniform 20% rate, equivalent to the stock trading tax rate. This would replace the current miscellaneous income treatment for many residents. If enacted, the tax reform could influence trading behavior, compliance costs, and long‑term market liquidity as part of the ongoing crypto tax policy evolution.

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