Japan’s Finance Minister Promises Major Changes to Crypto Tax by June 2025
Japan’s Treasury Minister Katsunobu Kato announced that the government will review the country’s encryption tax law by the end of June 2025. This is a response to Japan’s attention to the existing tax regulations of cryptocurrency merchants in Japan.
according to IOLITEGato announced the news at a plenary meeting of the House of Representatives on January 31, 2025. He explained that the Financial Services Bureau (FSA) will review the leadership and put forward the advice of the Governance of the Liberal Democratic Party (LDP) to achieve potential changes and implement the tax system. The review is expected to include suggestions on the necessary legislative amendments.
“We are discussing the matter in accordance with the tax reform outline of 2025 and we are considering the necessary legal arrangements. The Financial Services Bureau will verify a system about encrypted assets before June of this year.” He said.
The Prime Minister Shigeru Ishiba also weighs this matter, emphasizing the importance of the healthy development of Web 3.0 technology (including cryptocurrency). Ishiba said that crypto assets may solve some social problems in Japan and improve productivity. He also disclosed the government’s needs to ensure the protection of users and improve the environment of the domestic crypto market.
Japan’s current encryption tax law challenge
At present, the Japanese tax system requires cryptocurrency traders to report their transaction profits as part of its annual income tax declaration form, resulting in some high tax rates. Critics of the tax system believe that these high tax burdens have stifled the growth of the Japanese cryptocurrency department.
The Ministry of Finance and FSA are also considering revising the “Payment Service Law”, which uses cryptocurrencies as an asset category under the “Financial Instrument and Exchange Law”. This may marked the transformation of Japanese cryptocurrency supervision and taxation methods, which is consistent with international standards.
