Trading gains may get separate taxation while staking and NFT income stay different.
Japan is now making it clear that crypto assets are being brought into its modern financial framework through the 2026 tax reform. This policy direction is no longer merely an administrative update, but a step towards positioning crypto as a recognized investment instrument, not just an area of speculation or seasonal trading activity.
With this new approach, digital assets are encouraged to truly be used as a means of building wealth in a more structured and realistic way for the public.
The country aims to make the crypto investment ecosystem feel healthier and more realistic. The reform plan includes a more structured taxation on trading activities such as spot, derivatives, and crypto ETFs. Furthermore, investors will have the opportunity to carry forward trading losses for up to three years, giving them breathing room during unfavorable market conditions.
However, not all crypto activities fall directly into the new policy’s “single basket.” Income from staking, digital asset lending, and NFTs is expected to remain outside the more lenient investment taxation scheme. In other words, some areas remain treated differently.
This is understandable, given that the nature of these activities is not entirely the same as regular trading. While somewhat complex, this gradual approach demonstrates that Japan is not willing to rush things but is moving forward with considerable confidence.
This tax reform also reinforces the image that Japan is increasingly serious about integrating modern technology into its financial system. A more tolerant policy direction toward the crypto industry signals that the country wants to be at the forefront, rather than a spectator, of the global shift toward digital assets. The policy tone feels more mature, more realistic, and less like a trial and error.
On September 14, we reported that Iizuka City in Japan is testing IOTA-based digital identities to speed up evacuation processes during disasters, with plans to use DIDs and VCs through Turing Certs as part of a shelter authentication system.
Then, in early September, we also highlighted Japan Post Bank’s plans to launch DCJPY in 2026 to modernize savings accounts while opening up access to digital uses like NFTs and tokenized securities.
Last but not least, on June 24, we covered Japan’s plans to place crypto under the FIEA framework, including the potential for a Bitcoin ETF to strengthen investor protection. The proposal has not yet been ratified, but its discussion is scheduled and could go to parliament next year if all goes according to plan.
Read more on Crypto News Flash
