When Japan becomes crypto friendly can the crypto boom be far?

The world is taking a new stance towards crypto

First it was the United States of America in the developed economies that decided to embrace crypto. First it was with the approval of crypto ETF's and then with working with the idea of creating a stockpile of crypto.

As of March 2025 USA holds about 200,000 BTC, a stockpile that is steadily growing.

This is an action that has triggered quite a lot of curiosity as well as support for crypto worldwide.
The latest to join this trend is Japan.

Would Japan lower its crypto tax slab ?

Currently there is a 55% levy on gains made on crypto assets.
However there is chatter that this could be lowered to 20%
This step would bring the taxation on crypto at par with the tax on gains made on stocks.
With this parity a lot more people would be open to invest into the crypto markets.
This becomes possible as Japan acknowledges crypto as financial products. This single line statement means a big transformation in the taxation structure of Japan.

With this move Japan may see some new life into its financial markets. Despite the high taxation Japan boasts of a healthy 12 million crypto account holders who hold or delve into crypto.
This is a lot more than those dealing with corporate bonds or forex asset holders.
The lowering of taxes would bring fresh money into the system and act as a boost to the country's financial system.

With this proposed transition it is likely that Japan would look towards tokenization of real world assets which include stocks , real estate bonds etc.
Over time we may see Japan giving its nod to BTC Equity Traded Funds as well.

Though Japan is making its first positive moves towards embracing crypto however it has been extra cautious after the Mt. Gox collapsed.

Could Japan become the new poster boy for crypto?

The land of Sushi and the land of the rising sun

Despite the high crypto taxation ...

• A massive 12 million crypto user base that is likely to explode with lowering of taxes/
• An excess of 5000 billion yen are invested and traded on various crypto platforms.
• As per stastica 2025 numbers the growth rate of the Japanese crypto market is happening at a healthy 3.44%

If Japan can turn its economy around with a crypto friendly move then it would surely be setting up a model to emulate by the more conservative and risk averse economies of the world.

If USA and Japan can do it, why cannot the world follow?

USA is a more flamboyant economy and Japan has the image of having a more conservative approach. They seem like two ends of the spectrum.
Yet when they both embrace crypto and can use it to boost their economies there is no reason why the rest of the world economies cannot learn from these examples and improve the lot of their citizens.
Hopefully when the world embraces crypto it would not be solely limited to embracing BTC and run towards piling it up. Instead it would hopefully increase the adoption of the altcoins and make use of the various use cases which the different blockchains have to offer.

Main image created with AI

Posted Using INLEO