Japan is reducing taxes on cryptocurrency and introducing new rules for regulating digital assets, including increased control over unregistered exchanges

The ruling party of Japan, the LDP, has proposed reducing the capital gains tax on cryptocurrencies to 20 percent and creating a separate category for digital assets. According to the reforms, cryptocurrencies will be separated from securities, and the taxation of crypto derivatives will be aligned with the taxation of spot investments. Investments in cryptocurrency will be taxed only when converted to fiat money. Japan is also tightening control over unregistered crypto exchanges, requiring Google and Apple to block apps that violate local rules.