Sources indicate that Japan's cryptocurrency tax reform may not be officially implemented until January 2028.

PANews reported on December 17th that, according to CoinDesk, sources in Japanese political circles indicated that the country's cryptocurrency tax reform—specifically, the shift to a "separate taxation for reporting" system—may not be formally implemented until January 2028. Previously, the market widely expected that, given the near certainty of the Diet passing amendments to include cryptocurrencies under the Financial Instruments and Exchange Act next year, the new tax system would be implemented in conjunction with that law by 2027. However, according to political sources, the actual process may be slower than anticipated. One source stated, "Currently, there is a lack of grounds to accelerate (the tax reform). The government is more focused on investor protection and needs to observe the situation after the implementation of the Financial Instruments and Exchange Act before initiating the new tax system. Based on the normal process, it is expected to take effect on January 1, 2028."

Japan's current tax system classifies cryptocurrency trading profits as "miscellaneous income," which must be taxed together with wages and other income under a comprehensive tax system, with a maximum marginal tax rate of 55% (including local resident tax). Industry professionals and investors have long advocated for adopting a tax system similar to that for stock investments, implementing a separate taxation and reporting system for cryptocurrencies at a uniform 20% rate, in order to reduce the tax burden and promote market development.