Key Takeaways:
On March 31, the Diet passed a stopgap budget that keeps the proposal to reduce crypto tax from 55% to 20% flat tax to stop the Web3 exodus to Dubai. While the proposal has hailed critics say the slow 2028 timeline hinders bitcoin ETFs. Japan will enforce the FIEA update on Jan. 1, 2028, testing the industry during a 2-year transition. Criticism of the ‘Slow Pace’However, for individual traders, the move from the punitive 55% miscellaneous income tax to a 20.315% separate taxation regime is tied to future amendments of the Financial Instruments and Exchange Act (FIEA). Current projections suggest this transition will not be fully enforced until Jan. 1, 2028.
The ‘Specified Crypto’ Guardrails
