Expected reforms in the encrypted currency market
In a press report published by the Japanese Coinpost platform, which is one of the pioneering media platforms in the Crapto market in Japan:
In the context of updates related to the 2025 tax reform in Japan, it was announced that the tax system associated with digital assets was announced within the tax reform plan prepared by the Liberal Democratic Party.
This procedure represents a major step towards reforming the current tax system, which imposes rates of up to 55% on profits of encrypted assets as a diverse income, which led to anxiety about the migration of talents and startups, and its negative impact on the web 3 in the country.
Expected reforms in taxes on the Japanese encrypted currency market:
The scheme provides for separate taxes on cryptocurrency profits, so that they are similar to those applied to listed shares, while ensuring transparency and protecting investors.
Reforms are also expected to include facilitating the procedures for collecting profits and losses between cryptocurrencies, which will enhance Japan's competitiveness on the global scene.
Representative "Takoya Hirai", head of the party's digital office, made an urgent proposal to the Financial Services Agency to enhance the organizational framework associated with encrypted assets, with a focus on the following points:
Apply separate taxes to the profits and losses of encrypted assets.
Developing organizational systems to stimulate safe investment.
Improving cybersecurity to enhance the role of encrypted assets in the national economy.
The Minister of Finance affirmed his approval of this approach, and it is expected that the relevant authorities, such as the Financial Services Agency, will start to put the executive details soon.
Inclusion of taxes related to encrypted assets in the scheme paves the way for the introduction of a more fair tax system, which includes only 20% tax rates on profits, with a system that allows the deportation of losses.
This represents great progress after years of ignoring the proposed reforms.
In addition to issues related to encrypted assets, the plan ensures an increase in the tax deduction limit from 1.03 million yen to 1.23 million yen, with promises of more raising to 1.78 million yen in the future.
