Catenaa, Friday, January 02, 2026-Japan’s ruling coalition unveiled its 2026 tax reform blueprint, proposing a shift in how cryptocurrencies are treated under the country’s tax system.
The plan aims to position crypto assets alongside traditional financial products such as stocks and investment funds, moving away from treating them solely as speculative instruments.
The reform explores applying separate taxation to gains from spot trading, derivatives, and crypto-related exchange-traded funds.
Staking and lending rewards may remain under general taxation, depending on future legislation.
The blueprint also includes provisions for loss carryforwards for up to three years on qualifying crypto transactions, allowing investors to offset future gains with past losses, similar to stock and FX trading rules.
Officials clarified that cross-asset loss offsetting is unlikely. Even if crypto gains receive separate taxation, losses cannot generally be offset against profits from equities or other asset classes.
The plan covers transactions involving “specified crypto assets,” meaning only assets managed by registered operators under Japan’s financial regulatory framework may qualify for the new tax treatment.
The proposal does not explicitly address non-fungible tokens, leaving NFT income under the existing tax system. Lawmakers and financial authorities are expected to refine the categories and rules as the legislation progresses, aiming to integrate crypto more closely into Japan’s established capital markets framework while maintaining investor protections.
