Japan, the first economy to recognize Bitcoin as a legal payment method, continues to actively develop its cryptocurrency legislation. By 2025, it plans to implement new rules and clarifications for stricter regulation of crypto assets.
Cryptocurrency Regulations in Japan
In March 2025, a proposal was approved to reform laws concerning crypto brokerage and stablecoins. According to the new bill, cryptocurrency companies can operate as an 'intermediary business', while brokers will no longer be subject to financial regulations or anti-money laundering rules. Starting in 2026, Japan plans to classify crypto assets as financial instruments.
Cryptocurrency Taxation in 2025
Cryptocurrencies in Japan are taxed as 'miscellaneous income'. Current legislation considers the possibility of reducing the progressive taxation rate from 55% to a flat 20% on capital gains. Although this bill has not been passed, it is expected to be reviewed by the end of June 2025.
Crypto License and Adoption in Japan
Crypto brokers and platforms are required to register with the Financial Services Agency (FSA) to obtain a license for cryptocurrency asset exchange. By 2025, the cryptocurrency penetration rate in Japan is expected to rise to 14.7%, increasing the total number of cryptocurrency users to 18.69 million.
In conclusion, Japan continues to develop its cryptocurrency legislation, focusing on security and investor protection. The government expects that newly implemented measures will contribute to the growth of the crypto industry in the country.
