New Bullish Outlook for Bitcoin and Altcoins in Japan Thanks to Tax Reforms

Blotienso · 2026-01-12T02:14:01+00:00

Japan's cryptocurrency market may soon thrive as the government considers classifying Bitcoin as a financial product, which could reduce tax rates from up to 55% to a fixed 20%, attracting more investment. This change may also benefit over 110 other cryptocurrencies, fostering growth in Japan's altcoin ecosystem.

Blotienso

2026-01-12 02:14:01

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The cryptocurrency market in Japan may soon enter a booming development phase as the government is considering classifying Bitcoin as a financial product. According to renowned crypto analyst Willy Woo, this move could generate a wave of new demand from both individual and institutional investors. Bitcoin May Enjoy a 20% Tax Rate Currently, profits from cryptocurrencies in Japan are taxed according to a progressive personal income tax rate, with the highest reaching 43% – 55% for those earning over approximately $57,000 per year. This has caused many investors to hesitate when participating in the market. However, under the new plan, if Bitcoin is recognized as a financial product, the tax rate on Bitcoin profits and transactions will be a fixed 20% – similar to stocks and traditional financial instruments. This will help simplify the tax system and make Bitcoin investments much more attractive. Not Just Bitcoin, Over 110 Crypto Assets Also Benefit Notably, this plan is not limited to Bitcoin. About 110 other crypto assets are also expected to be classified as financial products. This opens up significant opportunities for the entire altcoin market in Japan, allowing new capital to flow strongly into the ecosystem. However, income from staking will be an exception and will continue to be taxed according to the current personal income tax rates. Impact on Businesses and Institutional Investors Willy Woo also believes that this change will affect companies holding Bitcoin, such as Metaplanet – a Bitcoin treasury company in Japan. Previously, this company benefited from tax advantages, but when individual investors are also subject to a 20% tax rate, this advantage will no longer be as clear. When Will the New Policy Take Effect? According to the current roadmap, Japan needs to pass legislation in the parliament before the new tax policy is implemented. It is expected that the 20% crypto tax will officially take effect from 2028. With these groundbreaking changes, Japan could become one of the most crypto-friendly markets in the world. If approved, this will be a major boost for Bitcoin and altcoins, opening a new growth cycle in the Land of the Rising Sun. 🚀

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