Japan's 2026 reform of crypto taxation reduces Bitcoin tax rates from 55% to 20%. How is this calculation made?

【Crypto World】Japan’s Financial Services Agency plans to implement major regulatory reforms in April 2026, reclassifying cryptocurrencies such as Bitcoin and Ethereum as financial products. While this shift appears to be an administrative adjustment, it actually leverages a significant tax advantage.

Renowned analyst Willy Woo pointed out the economic logic behind this: what does the classification of financial products mean? It means that the tax rate on crypto asset gains will drop sharply from the current marginal income tax rate to a fixed 20%. In other words, if your annual income exceeds $57,000, you might have paid 43-55% in taxes before, but now only 20%. What does this mean for Japanese investors? It directly boosts purchasing power.

The biggest impact will be on institutions like Metaplanet, which previously gained tax arbitrage advantages through self-custody of Bitcoin. This advantage is about to be eroded. Additionally, around 110 other cryptocurrencies are also included in the reform, but staking yields will still be taxed at marginal rates—indicating that the policy is still being refined and not all gains will be treated equally.

Overall, this reform aims to reduce the tax burden on Japanese investors and is expected to stimulate more individuals and institutions to buy Bitcoin. How the market will react remains to be seen in 2026.