The Japanese Financial Services Agency is reforming cryptocurrency tax: reducing it to 20% and allowing loss carryforwards, promoting local encryption ETFs and yen stablecoins.

The Japanese Financial Services Agency (FSA) proposed to reduce the cryptocurrency tax rate to 20% and incorporate it into the Financial Instruments and Exchange Act, paving the way for ETFs and yen stablecoins. (Background: Ripple has applied for a 'U.S. banking license,' CEO: Once approved, $RLUSD will become the new standard for stablecoins) (Additional context: Ripple applies for a U.S. banking license! The stablecoin RLUSD follows a fully compliant route of 'reserves into The Federal Reserve (FED) account') According to a report by Nikkei News earlier this week, the FSA announced a comprehensive cryptocurrency reform draft, including a drastic cut of the trading income tax rate from a maximum of 55% to 20%, and the inclusion of crypto assets under the management of the Financial Instruments and Exchange Act. According to commentary from Bloomberg, regulators hope to retain talent and capital through these measures, reversing years of outflow. Tax reform and regulatory easing are synchronized. In terms of tax burden, the FSA proposed a unified fixed tax rate of 20%, allowing for loss carryforward (taxpayers who incur operational losses in a given tax year are allowed to offset those losses in future profitable years). This means that investors will calculate their tax liabilities in the same way as stockholders, reducing cash pressure caused by fluctuations. Market participants expect that simplifying the tax base could enhance the trading willingness of retail investors and institutions, bringing new blood to the long-depressed domestic exchanges. More attention is drawn to the adjustment of legal hierarchy. If crypto assets are included under the FIEA, issuers will need to disclose financial and risk information and comply with insider trading prohibitions. The FSA stated that this will clear the last hurdle for the first domestic spot Bitcoin ETF. Based on experiences in the U.S. and Hong Kong, listing an ETF can quickly amplify liquidity and attract conservative funds such as pension funds. In line with the new framework, regulators are also expected to approve the first yen-denominated stablecoin JPYC, targeting an issuance volume of 1 trillion yen. At the same time, the FSA is studying the establishment of a 'Digital Finance Bureau' internally to focus on handling blockchain, tokens, and payment innovations, demonstrating a long-term commitment. The draft still needs to be reviewed by the National Diet, with implementation expected as early as the 2026 fiscal year. Observers remind that execution details, supervisory costs, and market adaptation periods may all impact effectiveness. How Japan balances risk management with innovation competition will provide important references for other economies. Related reports One article to understand the global value transfer network of XRP, RippleNet, and RLUSD Countdown to the listing of Ripple's stablecoin RLUSD: Will Ripple spend heavily on subsidies to start a customer acquisition war? Viewpoint: Ripple's lawsuit conclusion, XRP will face the harsh truth. <The Japanese Financial Services Agency is reforming cryptocurrency taxes: reducing to 20% and allowing loss carryforward, promoting domestic crypto ETFs and yen stablecoins> This article was first published in BlockTempo, the most influential blockchain news media.